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in Blythe, CA
Self-employed borrowers in Blythe have two main options for mortgage approval. Both Bank Statement Loans and Profit & Loss Statement Loans help when traditional income verification doesn't work.
These non-QM loans are designed for business owners and independent contractors. They offer flexible documentation requirements. Each approach has unique benefits depending on your financial situation.
Bank Statement Loans use 12 to 24 months of personal or business bank statements. Lenders analyze deposits to calculate your income. This method works well if you have consistent cash flow.
No tax returns are required for qualification. The lender reviews your statements to determine average monthly income. This option helps borrowers who take significant tax deductions.
Profit & Loss Statement Loans require a CPA-prepared P&L statement. This document shows your business income and expenses. The statement must be prepared by a licensed certified public accountant.
This option works well for established businesses with professional accounting. The P&L provides a clear picture of business profitability. Lenders use this to verify your ability to repay the mortgage.
The main difference is documentation type. Bank Statement Loans rely on actual cash flow while P&L Loans use accounting statements. Bank statements show real deposits; P&L statements show calculated profit.
Bank Statement Loans offer more flexibility in documentation. You don't need a CPA relationship. P&L Loans require professional preparation but may present income more favorably for some businesses.
Processing times can vary between the two options. Bank statements are straightforward to provide. P&L statements require CPA involvement, which may take additional time to prepare.
Choose Bank Statement Loans if you want quick documentation without CPA involvement. This works best if you have steady deposits and don't use formal accounting. It's ideal for newer businesses or sole proprietors.
Select P&L Statement Loans if you already work with a CPA. This option suits established businesses with formal bookkeeping. It may show higher income if your business has legitimate expenses that reduce cash deposits.
Consider your record-keeping habits and business structure. Both options serve self-employed Blythe borrowers well. Rates vary by borrower profile and market conditions, so compare both carefully.
Yes, most lenders accept business bank statements for Bank Statement Loans. Some allow a combination of personal and business accounts to show full income picture.
Most lenders require a year-to-date P&L statement prepared within the last 90 days. Your CPA must sign and date the document for it to be valid.
Rates vary by borrower profile and market conditions. Both loan types typically have similar rate ranges since they're both non-QM products for self-employed borrowers.
Generally yes, lenders prefer two years of self-employment in the same field. Some programs accept one year with strong compensating factors.
Switching documentation mid-application may delay approval. It's best to choose your documentation method upfront and stick with it throughout the process.