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in Huntington Beach, CA
Self-employed borrowers in Huntington Beach have two main options for income verification. Bank Statement Loans and Profit & Loss Statement Loans both serve entrepreneurs who don't receive traditional W-2s.
Both are Non-QM mortgages designed for business owners, freelancers, and independent contractors. Each option offers a different path to prove your income and qualify for a home loan.
Choosing the right loan depends on how you track your business finances. Your documentation style and business structure will guide which option works best for your situation.
Bank Statement Loans use 12 to 24 months of bank statements to verify income for self-employed borrowers. Lenders review your deposits to calculate average monthly income.
This option works well if you keep clean business records in your bank account. You don't need a CPA or formal financial statements to qualify.
The process is straightforward for borrowers who run their income through one or two accounts. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans use a CPA-prepared profit and loss statement to verify income for self-employed borrowers. This formal approach relies on professional accounting documentation.
You'll need to work with a certified public accountant to prepare your P&L statement. This option suits borrowers who already maintain formal business financials.
The CPA-prepared documents provide detailed income verification that lenders trust. Rates vary by borrower profile and market conditions.
The main difference is documentation type. Bank Statement Loans rely on actual deposits, while P&L Loans use accounting statements prepared by a CPA.
Bank Statement Loans offer faster preparation since you just gather statements. P&L Loans require hiring a CPA, which adds time and cost but provides detailed financial analysis.
Your business complexity matters too. Simple businesses often prefer bank statements, while complex operations benefit from CPA-prepared documents that explain income sources clearly.
Choose Bank Statement Loans if you want quick documentation and have straightforward deposits. This works great for freelancers and solo entrepreneurs with simple business banking.
Select P&L Statement Loans if you already work with a CPA or have complex business income. This option shines for established businesses with detailed accounting systems.
Consider your current record-keeping habits. If you maintain professional books, a P&L loan makes sense. If your bank account tells your income story clearly, bank statements work perfectly.
Bank Statement Loans typically have easier requirements. You just provide 12-24 months of statements without needing a CPA or formal accounting.
Yes, both are Non-QM loans designed for self-employed people. Your choice depends on how you document your income, not your employment type.
Bank Statement Loans are usually faster since gathering statements is quick. P&L Loans take longer because you need a CPA to prepare statements first.
P&L Statement Loans cost more upfront due to CPA fees. Bank statements are typically free or low-cost from your bank.
You typically choose one verification method per loan. However, your lender can advise which option gives you the best approval odds.