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in Roseville, CA
Roseville's self-employed borrowers face a common problem: your tax returns don't show your real income. Both bank statement and P&L loans solve this, but they work differently.
Bank statement loans pull income directly from deposits over 12-24 months. P&L loans require a CPA-prepared statement showing business profit and loss.
The right choice depends on how you run your business and what documentation you already have. Most Roseville borrowers pick based on which paperwork is easier to produce.
Bank statement loans verify income using deposits from your business or personal accounts. Lenders average your monthly deposits over 12 or 24 months to calculate qualifying income.
This works well for contractors, realtors, and business owners who write off most expenses. You skip the tax return problem completely.
Most lenders apply an expense factor of 25-50% to account for business costs. The rest counts as qualifying income for your mortgage.
P&L statement loans use a year-to-date profit and loss statement prepared by your CPA. The lender uses your net business income as qualifying income.
This option makes sense if you already work with a CPA who maintains formal books. The P&L needs to be signed and dated by a licensed accountant.
Lenders typically want to see 12-24 months of business history. Some accept a shorter track record if your P&L shows strong, consistent profit.
Bank statement loans are faster because you just submit statements you already have. P&L loans take longer since your CPA needs to prepare formal financials.
Income calculation differs significantly. Bank statements use gross deposits minus an expense factor. P&L loans use net profit after all business expenses.
Cost and credit requirements are similar for both programs. Rates vary by borrower profile and market conditions, but expect 1-2% above conventional rates.
Choose bank statement loans if you deposit most revenue into one account and don't use a CPA. This works for real estate agents, gig workers, and contractors who track cash flow but not formal profit.
Pick P&L loans if you already maintain books with a CPA and your net profit looks strong. This fits established businesses with clean financials and multiple revenue streams.
Most Roseville borrowers go with bank statements because they're faster and don't require hiring help. But if your deposits look messy or inconsistent, a clean P&L can actually qualify you for more.
Yes. Most lenders accept either personal or business accounts for bank statement loans. Just use accounts where your income actually deposits.
Expect $500-2000 depending on business complexity. If you don't already work with a CPA, bank statement loans are usually cheaper and faster.
Rates are typically identical for both programs. Pricing depends on credit score, down payment, and property type—not which documentation method you choose.
Most lenders want 12-24 months of business history for either option. Some accept shorter history with strong income and higher down payments.
P&L loans might work better if deposits vary widely. A CPA can smooth income presentation by showing average monthly profit instead of fluctuating deposits.