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in Fairfax, CA
Most Fairfax self-employed buyers can't show a tax return that reflects their real income. These two non-QM loans solve that — differently.
Both skip traditional income verification. The difference is how you document what you actually earn.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average those deposits and apply an expense factor.
This works best when your bank accounts show strong, consistent cash flow. Irregular or lumpy deposits can hurt your qualifying income.
P&L loans use a CPA-prepared profit and loss statement instead of bank deposits. Your accountant documents what the business actually netted.
This can qualify you on a higher income figure if your deposits don't tell the full story. But the P&L must come from a licensed CPA.
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 Fairfax.
Most Fairfax self-employed buyers can't show a tax return that reflects their real income. These two non-QM loans solve that — differently.
Both skip traditional income verification. The difference is how you document what you actually earn.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average those deposits and apply an expense factor.
Bank statement loans rely on raw cash flow. P&L loans rely on your accountant's income calculation. Same borrower, often different qualifying numbers.
P&L loans typically have fewer months of documentation to gather. But lenders scrutinize the CPA's methodology closely. Not every accountant prepares these the right way.
High-revenue businesses with large deposit history do well with bank statements. Leaner operations with low deposits but solid profits fit the P&L route better.
In Fairfax, we see a lot of creative professionals and small business owners. Many have inconsistent monthly deposits — the P&L often qualifies them at a higher income.
Some lenders allow both. We shop across 200+ wholesale lenders to find who accepts your specific combo.
They must be a licensed CPA. An in-house bookkeeper or tax preparer won't qualify — lenders will reject it.
Rates vary by borrower profile and market conditions. Bank statement loans are generally more common, so pricing is often more competitive.
Most lenders require 12 months minimum. Some non-QM programs require 24 months for the best rate tier.
Yes. Non-QM lenders often go well above conforming limits. Marin's prices require it.
Most non-QM lenders want 660 or higher. Some programs go lower with a larger down payment.