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in Aliso Viejo, CA
Self-employed borrowers in Aliso Viejo have two strong mortgage options. Both bank statement loans and profit & loss statement loans help business owners qualify without traditional tax returns.
These non-QM mortgages serve entrepreneurs, freelancers, and independent contractors. Each option uses different documentation to prove your income. Understanding which fits your situation can speed up your home purchase.
Bank statement loans use 12 to 24 months of your business or personal bank statements. Lenders review deposits to calculate your qualifying income. This works well if you have consistent cash flow.
You don't need a CPA to prepare special documents. Simply provide your bank statements showing regular deposits. This option gives you flexibility in how you document earnings.
Profit & loss statement loans require a CPA-prepared P&L document. A certified accountant must create and sign your financial statement. This formal approach shows your business income and expenses clearly.
This option works well if you already work with a CPA. The prepared statement gives lenders a professional view of your finances. It can be faster if your accountant already tracks your business performance.
The main difference is documentation style. Bank statement loans rely on actual cash flow patterns. Profit & loss loans use professionally prepared financial summaries.
Cost is another factor to consider. Bank statement loans just need your existing statements. P&L loans require paying a CPA to prepare documentation. Processing time can vary based on how quickly you gather papers.
Rates vary by borrower profile and market conditions. Both loan types offer similar flexibility for self-employed professionals. Your choice depends on which documentation you can provide more easily.
Choose bank statement loans if you have consistent deposits and want simplicity. This works great if you don't currently work with a CPA. It's often faster since you already have the statements.
Choose profit & loss loans if you have an accountant relationship. This option makes sense if your CPA already prepares financial statements. It provides a cleaner picture if your deposits vary month to month.
Both options serve Aliso Viejo's self-employed community well. Talk with a mortgage broker to review your specific situation. They can help you pick the path that gets you approved fastest.
Most lenders accept either personal or business bank statements. Some borrowers use both to show complete income. Your broker can advise which approach works best for your situation.
Bank statement loans can be faster if you have statements ready. P&L loans depend on your CPA's schedule. Both typically close within 30-45 days once documentation is complete.
Non-QM loans often have slightly higher rates than conventional loans. Rates vary by borrower profile and market conditions. Your credit score and down payment affect your rate significantly.
Most non-QM loans require 10-20% down payment. Larger down payments can help you qualify more easily. Your specific requirement depends on credit score and income strength.
Yes, you can change documentation types if needed. Your broker can pivot if one approach isn't working. It's best to discuss both options upfront to choose wisely.