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in Corte Madera, CA
Self-employed borrowers in Corte Madera rarely qualify with tax returns alone. Both bank statement and P&L loans solve that — but they work differently.
Choosing the wrong one can cost you time, rate, or approval. Know which fits your income documentation before you apply.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits, then apply an expense factor to estimate net income.
This works well if your business account shows strong, consistent cash flow. More months of statements typically means a more favorable income calculation.
P&L loans use a CPA-prepared profit and loss statement — typically covering 12 to 24 months — to verify income. Your accountant does the heavy lifting.
This option suits borrowers whose bank deposits don't reflect true business income. If you reinvest heavily or run multiple accounts, a P&L can tell a cleaner story.
Local decision guide
Use this comparison to weigh Bank Statement Loans and Profit & Loss Statement Loans through local payment fit, eligibility, documentation, and timing before choosing a path in Corte Madera.
Self-employed borrowers in Corte Madera rarely qualify with tax returns alone. Both bank statement and P&L loans solve that — but they work differently.
Choosing the wrong one can cost you time, rate, or approval. Know which fits your income documentation before you apply.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits, then apply an expense factor to estimate net income.
Bank statement loans rely on raw deposit data. P&L loans rely on your CPA's documented net income. Lenders treat these differently when pricing risk.
Bank statement programs are more widely available across wholesale lenders. P&L-only programs are offered by fewer lenders and often carry slightly higher rates. Rates vary by borrower profile and market conditions.
If your bank accounts show strong, regular deposits, go with the bank statement route. It's straightforward and gives lenders clear data to work with.
If your deposits are messy — lots of transfers, variable timing, or business commingling — a CPA-prepared P&L gives you a cleaner income picture. Corte Madera buyers often run complex businesses. We see both scenarios regularly.
Yes. Most lenders accept personal or business statements. Personal accounts typically carry a lower expense factor, which can raise your qualifying income.
Yes. Lenders require the P&L to be prepared and signed by a licensed CPA. An in-house bookkeeper's statement won't qualify.
Bank statement loans generally price better. P&L programs carry more lender risk, so rates tend to run higher. Rates vary by borrower profile and market conditions.
Yes. We can run your file through both scenarios. We work with 200+ wholesale lenders, so we find the program that fits your actual numbers.
Most non-QM lenders want a 660 minimum, though some go lower with larger down payments. Stronger credit means better rates on both programs.
Most bank statement and P&L programs require 10% to 20% down. Loan size and credit score affect where you land in that range.