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in Livingston, CA
Self-employed borrowers in Livingston face a basic choice: show your income through bank deposits or through a CPA's profit and loss statement. Both are non-QM loans that skip tax returns, but they verify your earnings differently.
Bank statement loans track cash flow over 12-24 months. P&L loans rely on one year of financials from your accountant. Your business structure and how you manage money determine which route gets you approved faster.
Bank statement loans use your actual deposits to calculate income. Lenders pull 12 or 24 months of statements and average your deposits after removing transfers and one-time events. No tax returns required.
You need consistent deposits with minimal month-to-month volatility. Most lenders want 620+ credit and 10-20% down. This works well if you write off most income or run expenses through your business account.
P&L loans use a CPA-prepared profit and loss statement covering 12 months. Your accountant certifies the numbers. Lenders calculate qualifying income from your net profit before any write-offs you typically claim.
You need a licensed CPA who'll sign off on your business financials. Credit minimums run 620-640 depending on the lender. Down payments start at 10-20%. This route works if your deposits are irregular or you mix personal and business funds.
The documentation split is the main difference. Bank statement loans show what actually hit your account. P&L loans show what your business earned on paper before you paid yourself or took distributions.
Processing speed varies too. Bank statements can close in 21-30 days once you upload files. P&L loans need your CPA to prepare docs first, adding 1-2 weeks. Rates are similar, usually 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions.
Choose bank statement loans if your deposits are steady and you don't want to involve your CPA. This works for contractors, small retailers, and service providers in Livingston who keep clean business accounts.
Go with P&L if your deposits jump around, you commingle funds, or your accountant already tracks detailed financials. Real estate agents, seasonal businesses, and multi-entity owners often prefer this path. We review both options and pick the one that shows your income in the best light.
Yes, sole proprietors often qualify with personal accounts. Business accounts work too if that's where your income lands.
Your CPA must be licensed and in good standing. Most lenders verify the license directly with state boards.
Rates are nearly identical between the two. Your credit score and down payment affect pricing more than documentation type.
Yes, but it restarts underwriting. We choose the right path upfront to avoid delays and resubmissions.
Both can go up to $3-4 million with strong financials. Your qualifying income determines the actual loan size.