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in Blythe, CA
Self-employed borrowers in Blythe can't always use tax returns to qualify. These two non-QM loan options solve that problem differently.
Both skip traditional income docs. The right choice depends on how your income looks on paper and what your CPA has on file.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits and apply an expense factor.
This works well if your business account shows strong, consistent cash flow. Irregular deposits can complicate underwriting.
P&L loans use a CPA-prepared profit and loss statement to verify income. Most lenders want a 12 to 24 month P&L, signed by a licensed CPA.
This is a lighter doc load than bank statements. But your numbers have to hold up — lenders scrutinize CPA-prepared figures closely.
Bank statement loans rely on raw deposit history. P&L loans rely on an accountant's summary of your business income and expenses.
If your deposits are high but your CPA writes off a lot, bank statements may show more qualifying income. The opposite is also true.
Pick bank statements if your deposits are strong and your tax write-offs are aggressive. Your CPA's numbers may understate what you actually earn.
Pick P&L if your business runs lean, your books are clean, and you want a faster doc process. Talk to your CPA before you decide.
Yes, most lenders accept personal statements. Business accounts typically get a higher expense factor applied, which reduces qualifying income.
Lenders require a licensed, third-party CPA. Your bookkeeper or tax preparer may not qualify if they aren't a credentialed CPA.
Yes. Both are non-QM products. Rates are higher than conventional loans and vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620, though stronger scores get better pricing. Some lenders go lower with a larger down payment.
Most lenders want at least two years of self-employment history. A brand-new business makes either option very difficult to qualify for.
P&L loans often move faster since the doc package is smaller. Bank statement reviews take time, especially with 24 months of records.