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in Anaheim, CA
Self-employed borrowers in Anaheim have two main non-QM mortgage options. Both Bank Statement Loans and Profit & Loss Statement Loans help those who don't have traditional W-2 income.
These programs verify income differently than conventional mortgages. They're designed for business owners, freelancers, and independent contractors. Each approach has unique benefits depending on your financial situation.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders review deposits to calculate your qualifying income. This method works well if you have consistent cash flow.
You don't need tax returns or CPA-prepared documents. The process is often faster since bank statements are readily available. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans rely on CPA-prepared financial statements to verify income. A licensed accountant must create your P&L statement. This option suits borrowers who already work with a CPA for their business.
The P&L shows your business revenue minus expenses. This gives lenders a clear picture of your actual earnings. Rates vary by borrower profile and market conditions.
The main difference is documentation. Bank Statement Loans need your actual bank statements for 12-24 months. P&L Statement Loans require professionally prepared financial statements from a CPA.
Cost and timeline also differ. Bank statements are free and quick to obtain. CPA-prepared P&L statements cost money and take time to create. However, P&L loans may offer better terms if your financials look strong.
Income calculation methods vary too. Bank statement programs analyze deposits and apply expense ratios. P&L programs use your net income as calculated by your accountant.
Choose Bank Statement Loans if you need quick documentation and don't use a CPA regularly. This works best for borrowers with steady deposits and straightforward finances. It's popular among Anaheim's service professionals and consultants.
Choose P&L Statement Loans if you already have a CPA and detailed business records. This option suits established businesses with complex finances. It may help if your bank statements don't show your true income clearly.
Consider your current business setup. Do you have easy access to 24 months of statements? Or do you maintain formal books with an accountant? Your documentation habits often determine the best path forward.
Most lenders accept either personal or business bank statements. You can sometimes combine both to show complete income. Your loan officer will recommend the best approach for your situation.
Bank Statement Loans often close faster since documents are readily available. P&L loans may take longer if you need to have statements prepared. Both typically close within 30-45 days once documents are ready.
Credit requirements vary by lender and program. Most non-QM loans accept credit scores starting around 600-620. Higher scores generally qualify for better rates and terms.
Rates vary by borrower profile and market conditions for both programs. Your specific rate depends on credit score, down payment, and income documentation. Neither consistently offers lower rates than the other.
Yes, both loan types work for investment properties and primary residences. Self-employed investors often prefer these programs. They can show rental income and business income together.