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in Larkspur, CA
Self-employed buyers in Larkspur rarely fit the W-2 mold. These two non-QM loans exist for exactly that reason.
Both skip tax returns entirely. The difference is how each one proves your income to a lender.
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 well if your business account shows strong, consistent cash flow. Irregular deposit patterns can hurt your qualifying income.
P&L loans use a CPA-prepared profit and loss statement to verify income. No bank statements needed.
Your CPA signs off on the numbers. That document becomes the income proof. It works well when your books show strong net profit.
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 Larkspur.
Self-employed buyers in Larkspur rarely fit the W-2 mold. These two non-QM loans exist for exactly that reason.
Both skip tax returns entirely. The difference is how each one proves your income to a lender.
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 require more paperwork — up to two years of statements. P&L loans need one clean document from your CPA.
P&L loans depend on what your CPA reports as net income. If you write off heavily, that can reduce your qualifying income significantly.
Bank statement loans look at gross deposits and back out expenses with a lender-set ratio. High write-offs hurt you less.
If your Larkspur business runs high revenue with moderate write-offs, bank statements likely show stronger income. Go that route.
If your books are clean and your CPA reports solid net profit, a P&L loan is faster and simpler. Fewer docs, quicker process.
Marin County prices run steep. Your income documentation method directly affects how much house you can qualify for. Pick the approach that shows the most income honestly.
Some lenders allow both for added support. Most programs require one primary method. We'll match you to lenders who accept your strongest documentation.
Both are non-QM and can go to high loan amounts. Marin County prices are steep, so your income documentation needs to be solid.
A licensed CPA must prepare and sign it. Lenders will not accept self-prepared P&L statements.
Most lenders require 12 or 24 months. Twenty-four months gives a fuller income picture and can improve your qualifying average.
Yes. Non-QM loans carry higher rates than conventional financing. Rates vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620 to 660 credit score. Stronger scores improve your rate on both programs.