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in Madera, CA
Both loan types help self-employed Madera borrowers qualify without tax returns. The real difference is how lenders verify your income—and which documents you already have ready.
Bank statement loans analyze deposits across 12-24 months. P&L loans require a CPA-prepared financial statement. One isn't better—they just fit different business structures and record-keeping styles.
Bank statement loans calculate income from business and personal account deposits. Lenders review 12 or 24 months of statements, then apply a percentage—typically 50-75%—to account for expenses.
This works well for contractors, gig workers, and cash-heavy businesses. You don't need formal bookkeeping or a CPA relationship. Most borrowers need 10-20% down and a 640+ credit score.
P&L statement loans rely on a CPA-prepared profit and loss report covering 12-24 months. The CPA must be licensed and unrelated to you. Lenders use the net income figure directly.
This route suits borrowers with organized books and an existing CPA. You'll typically need a business license and strong credit. Rates vary by borrower profile and market conditions.
Bank statement loans are faster if you don't already work with a CPA. No need to order a formal P&L—just upload your statements. P&L loans can show higher qualifying income if your books are clean and expenses are properly categorized.
Both programs accept similar credit scores and down payments. The choice comes down to whether you keep formal books. Madera borrowers with irregular deposits often find bank statement loans easier. Those with organized accounting prefer P&L loans.
Pick bank statement loans if you manage your own books or work in cash-heavy industries. Pick P&L loans if you already have a CPA and track expenses carefully. Neither is inherently cheaper—rates depend on credit, down payment, and loan size.
Most Madera self-employed borrowers start with bank statements because the documents are immediately available. If your P&L shows stronger income, that route can unlock better loan amounts. We shop both options across 200+ lenders to find your best fit.
Yes, most lenders accept both account types. They'll combine deposits to calculate total income, then apply an expense ratio.
No, any licensed CPA works. They just can't be a relative or business partner—lenders require an independent third party.
Bank statement loans close quicker if you don't already have a CPA-prepared P&L. Ordering a new P&L adds 1-2 weeks to the timeline.
Yes, if one program doesn't show enough income, we can pivot to the other. Many brokers shop both options upfront to compare.
Most lenders offer both programs for primary homes and investment properties. Rates and down payments adjust based on occupancy type.