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in Tiburon, CA
Tiburon's median home prices push well into seven figures. Self-employed buyers need income documentation that matches that reality.
Both bank statement and P&L loans serve self-employed borrowers. The difference is how lenders verify your earnings and who qualifies fastest.
Bank statement loans use 12 to 24 months of personal or business bank deposits. Lenders calculate income from average monthly deposits minus standard expenses.
No tax returns required. This works well if you write off heavy deductions that shrink your reported income. Approval timeline runs 30 to 45 days.
You need clean bank statements with consistent deposits. Lenders flag large one-time transfers or erratic cash flow patterns.
P&L loans require a CPA-prepared profit and loss statement covering 12 to 24 months. Some lenders also want a balance sheet and business license.
Your CPA must be licensed and willing to sign the documents. Lenders verify income directly from the P&L bottom line without adjustments.
Processing moves faster than bank statement loans when your CPA already maintains current financials. Expect 25 to 35 days to close with prepared documents.
Bank statement loans calculate income from deposits. P&L loans use your reported profit. That creates different qualifying amounts for the same business.
Bank statements show actual cash flow including money you might not report as income. P&L statements reflect what your CPA books as profit after expenses.
Rates run similar on both products. Your credit score and down payment matter more than documentation type. Expect rates 1 to 2 points above conventional mortgages.
Choose bank statements if your tax returns show minimal income due to depreciation or business deductions. Also best if you don't have a CPA relationship or current P&L prepared.
Choose P&L if your CPA maintains updated financials and your business shows strong net profit. Works well for established companies with clean books.
Many Tiburon buyers run consultancies or professional practices. Those businesses often suit P&L documentation since overhead stays low and profit margins run high.
No. Lenders require you to choose one documentation path. Mixing both creates underwriting conflicts about which income source to verify.
Yes. Most non-QM lenders want 20% down minimum for either program. Higher loan amounts may require 25% to 30% down regardless of documentation.
Rates run virtually identical. Your credit score, down payment, and property type affect pricing more than whether you use bank statements or P&L.
Switching restarts underwriting from scratch. Pick your documentation path before applying and gather all required documents upfront.
No. Your CPA can be located anywhere as long as they hold a valid license and prepare GAAP-compliant financial statements.