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in Sausalito, CA
Sausalito's high-end market attracts business owners, consultants, and creatives who write off everything. Traditional mortgage underwriting penalizes exactly what makes you smart with taxes.
Both bank statement and P&L loans solve the same problem—proving income when your tax returns don't tell the story. The difference is how lenders calculate what you can borrow and what documentation you need to provide.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate income. Lenders typically count 50% of total deposits as qualifying income, though some programs go higher for business accounts.
You submit statements directly from your bank. No CPA letter, no P&L prep, no tax return reconciliation. Most lenders want consecutive months with no gaps, and they'll scrutinize large one-time deposits.
P&L loans require a CPA-prepared profit and loss statement covering 12-24 months. Your accountant signs off on business revenue and expenses, and lenders use the net income figure to qualify you.
This works better when your business shows strong profitability on paper. Lenders want year-over-year consistency and a CPA who'll stand behind the numbers. Some programs accept tax-prepared statements, but most want a licensed CPA.
The big split is calculation method. Bank statement loans count gross deposits, then apply a percentage. P&L loans use net income after expenses—the same number your CPA would defend in an audit.
Bank statement programs move faster because you're not waiting on your accountant. But P&L loans often qualify you for more if your business runs lean and profitable. Rates and down payments are similar across both—expect 10-20% down and rates 1-2% above conventional.
Choose bank statements if you run high volume through accounts but write off aggressively. This works for contractors, consultants, and anyone whose deposits tell a better story than their bottom line.
Go P&L if your books show consistent profitability and your CPA keeps clean records. Tech founders, established service businesses, and anyone with audited financials usually qualify for more this way. Rates vary by borrower profile and market conditions.
No. Lenders pick one income documentation method per file. You choose the approach that shows higher qualifying income for your situation.
Yes. Both typically require 10-20% down depending on credit score and loan amount. Higher-priced properties may need 20-25% down regardless of documentation type.
Rates are nearly identical between the two. Pricing depends more on credit score, down payment, and property type than documentation method.
Most lenders want 12-24 consecutive months. Gaps raise questions. The longer the history, the stronger the income trend appears to underwriting.
Most lenders require an active CPA license. Tax preparers and enrolled agents don't typically qualify unless the lender specifies otherwise in program guidelines.