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in Mammoth Lakes, CA
Mammoth Lakes attracts seasonal business owners, short-term rental operators, and independent contractors who don't fit traditional mortgage boxes. Both bank statement and P&L loans skip W-2 verification, but they prove income differently.
Your choice depends on how you run your books and what records you keep. One uses raw deposits, the other needs formal accounting. Most self-employed borrowers qualify for one but not both.
Bank statement loans calculate income from 12 or 24 months of business or personal bank deposits. Underwriters average your monthly deposits and apply an expense ratio, usually 25-50%. No CPA required.
This works well if your business runs through one or two accounts with consistent deposits. Seasonal fluctuations average out over 24 months. Expect rates 1-2% above conventional loans.
P&L statement loans require a CPA-prepared profit and loss statement covering at least 12 months. Some lenders want a balance sheet too. Your net income from the P&L becomes your qualifying income.
This path makes sense if you already work with a CPA for your business. The P&L shows your actual profitability after expenses. Rates typically run slightly lower than bank statement programs.
Bank statement loans look at gross deposits, then subtract estimated expenses. P&L loans use your actual net profit after all business costs. If you write off heavy expenses, the P&L might show less income than bank deposits suggest.
Documentation splits them apart. Bank statements are simpler but less precise. P&L statements require professional preparation but give lenders a clearer profit picture. Credit score and down payment requirements stay similar across both programs.
Choose bank statement loans if you don't have a CPA or your business runs lean without heavy deductions. This works for contractors, rental owners, and seasonal operators who deposit most revenue. Choose P&L loans if you maintain formal books and want to use your true net profit.
Mammoth's vacation rental market creates another angle. If you run STRs and show strong deposits but claim maximum tax deductions, bank statements might qualify you for more. If you keep clean books and show solid net income, the P&L route often costs less.
Yes, most lenders accept personal statements if your business income flows through them. Mixing both accounts works too if they tell a complete story.
Most programs require 24 months of self-employment history. Some lenders accept 12 months with strong compensating factors like high credit or large down payment.
Bank statement loans close quicker since you don't need to wait for CPA preparation. Expect 21-30 days versus 30-45 for P&L loans.
Yes, we can pivot if your first choice doesn't qualify you. Many borrowers try bank statements first, then move to P&L if income calculation improves.
Yes, both programs work for investment property purchases in Mammoth. Lenders view STR income the same as other self-employment revenue.