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in Rocklin, CA
Self-employed buyers in Rocklin face a common problem: your tax returns show minimal income because you write off everything. Both bank statement and P&L loans solve this by looking at actual cash flow instead of adjusted gross income.
The question isn't which is better—it's which documentation you already have. One uses raw bank deposits, the other needs a CPA-prepared financial statement.
Bank statement loans analyze 12 to 24 months of business or personal bank statements. Lenders calculate income by averaging total deposits minus obvious transfers between your own accounts.
You don't need a CPA or formal bookkeeping. If money hits your account consistently, that's your qualifying income. Most lenders in our network accept personal statements if you run income through your own checking.
P&L statement loans require a CPA-prepared profit and loss statement covering 12 to 24 months. The lender uses your bottom-line net profit as qualifying income before most deductions.
This route works if you already work with a CPA who maintains your books. The statement must come from a licensed accountant—self-prepared P&Ls don't count with any lender we use.
Bank statement loans are simpler if you don't use a CPA. Upload statements, lender does the math. P&L loans cost you $500-1500 for CPA prep but often qualify you for more income because accountants add back non-cash deductions.
Rates are similar—both price as non-QM loans. Down payment requirements match at 10-20% depending on credit score. The real difference is preparation time: bank statements you have today, P&L prep takes 2-4 weeks.
Choose bank statement loans if you don't currently work with a CPA or need to close quickly. Most Rocklin business owners we work with—contractors, consultants, small retailers—go this route because statements are ready immediately.
Go with P&L if you maintain formal books and want maximum purchasing power. Tech contractors and medical professionals in Rocklin often qualify for 15-20% more income this way because CPAs add back depreciation and home office deductions.
No, lenders require one method or the other. Pick the documentation that shows your income most favorably.
Yes, both qualify for primary residence, second home, and investment properties. Down payment increases to 20-25% for rentals.
Rates are nearly identical since both are non-QM products. Your credit score and down payment matter more than documentation type.
Bank statement loans close in 21-30 days typically. P&L loans take similar time once the CPA statement is ready.
Yes, but it restarts underwriting. Choose your documentation method before submitting to avoid delays.