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in Dos Palos, CA
Self-employed borrowers in Dos Palos face a choice: verify income through bank statements or a CPA-prepared P&L. Both are non-QM loans designed for business owners who can't use tax returns.
The right path depends on your recordkeeping, how you run deposits, and whether you already work with a CPA. Many ag business owners and service contractors here qualify for one but not both.
Bank statement loans pull income directly from 12 or 24 months of business or personal account activity. Lenders apply a percentage factor to your deposits to calculate qualifying income.
You don't need a CPA or formal books. If you run most revenue through one account and keep deposits consistent, this is often the faster route. Rates vary by borrower profile and market conditions.
P&L statement loans rely on a year-to-date or trailing 12-month profit and loss prepared by a licensed CPA. The underwriter uses net income after expenses to determine what you qualify for.
This loan fits borrowers who already keep clean books and file detailed returns. If you have a CPA relationship and organized financials, underwriting is straightforward. Rates vary by borrower profile and market conditions.
Bank statement loans look at gross deposits, which helps if you write off most income. P&L loans use net profit, which works better if you show strong margins on paper.
Bank statement programs don't require third-party prep or CPA involvement. P&L loans demand professional financials but can result in higher qualifying income if your expenses are low and books are tight.
Choose bank statements if you don't have a CPA, run cash-heavy operations, or write off most income on tax returns. Choose P&L if you keep detailed books and your net profit is solid.
Most Dos Palos ag operators and contractors start with bank statements. If you already file quarterly financials or work with a bookkeeper, P&L can deliver stronger income calculations and smoother underwriting.
You can use personal or business accounts, or a blend of both. Lenders just need to see consistent deposits that reflect your income.
No audit needed. A CPA-prepared P&L is enough. Some lenders accept a year-to-date statement if you're mid-year.
Rates are similar since both are non-QM. Pricing depends more on credit, down payment, and reserve strength than the income doc method.
Lenders average deposits over 12 or 24 months. Seasonal swings are normal in ag and service work—underwriters account for that.
Yes, if one route shows stronger income. We compare both upfront to see which qualifies you for more house.