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in Tiburon, CA
Tiburon attracts self-employed buyers — consultants, business owners, partners in professional firms. Most can't qualify with a tax return alone.
Two non-QM loan types solve that problem differently. Bank statements use your cash flow. P&L loans use a CPA's summary. Here's how to pick the right one.
Bank statement loans verify income using 12 to 24 months of deposits. Lenders calculate an average monthly deposit, then apply an expense factor.
This works best when your deposits are consistent and large. Lenders want to see clean statements — fewer transfers between accounts, fewer anomalies.
A P&L loan uses a profit and loss statement prepared by a licensed CPA. Lenders treat that document as your income verification — no bank statements needed.
This fits borrowers whose deposits are messy but whose business income is real. A clean CPA-prepared P&L can document income that bank statements would obscure.
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 Tiburon.
Tiburon attracts self-employed buyers — consultants, business owners, partners in professional firms. Most can't qualify with a tax return alone.
Two non-QM loan types solve that problem differently. Bank statements use your cash flow. P&L loans use a CPA's summary. Here's how to pick the right one.
Bank statement loans verify income using 12 to 24 months of deposits. Lenders calculate an average monthly deposit, then apply an expense factor.
Bank statement loans require more paperwork but give lenders raw data. P&L loans require less documentation but lean on your CPA's credibility.
Rate and qualification terms differ between the two. Bank statement loans are more widely offered and often have more lender competition. P&L loans carry slightly more lender risk, which can show up in pricing. Rates vary by borrower profile and market conditions.
If your business deposits are high and regular, the bank statement loan usually wins. More lenders compete for that file, which means better pricing.
If your books are complex — multiple entities, heavy intercompany transfers — a CPA-prepared P&L cuts through the noise. Let your accountant do the heavy lifting.
Some lenders allow both as supporting documents. Most programs pick one method as primary — mixing them isn't standard.
Self-employed borrowers with a CPA-prepared P&L covering at least 12 months. You must own your business — W-2 earners don't qualify.
Not necessarily. Bank statement programs have more lender competition, which can help pricing. Rates vary by borrower profile and market conditions.
Yes — lenders require a licensed CPA or enrolled agent to prepare and sign it. A bookkeeper's statement won't be accepted.
Most lenders want 12 to 24 months. Longer history gives them more confidence in your average monthly income.
P&L loans often have less paperwork to compile. But underwriting timelines depend on the lender, not just the document type.