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in Indian Wells, CA
Self-employed borrowers in Indian Wells have two strong non-QM mortgage options. Both Bank Statement Loans and Profit & Loss Statement Loans bypass traditional tax returns for income verification.
These programs help business owners and freelancers who show lower taxable income. The right choice depends on your financial records and business structure. Both options can work for luxury homes in Indian Wells.
Bank Statement Loans use 12 to 24 months of personal or business bank statements. Lenders review deposits to calculate your average monthly income. This works well if you have consistent cash flow.
You don't need a CPA to prepare special documents. Just provide your regular bank statements showing business deposits. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans rely on CPA-prepared financial statements. Your accountant creates a P&L showing business income and expenses. This provides a clean, professional income picture.
This option works well for established businesses with regular CPA relationships. The prepared statement may show income more favorably than raw bank deposits. Rates vary by borrower profile and market conditions.
The main difference is documentation. Bank Statement Loans review raw deposits over many months. P&L Loans use a single, professionally prepared financial document from your CPA.
Bank Statement Loans may be faster if you have statements ready. P&L Loans require time for your accountant to prepare documents. Cost differs too since P&L programs need CPA preparation fees.
Income calculation varies between programs. Bank statements show gross deposits which get adjusted. P&L statements already separate business income from expenses in a clear format.
Choose Bank Statement Loans if you want faster processing without CPA involvement. This works best with clean, consistent business deposits. It's ideal if you don't have an ongoing CPA relationship.
Pick P&L Statement Loans if you already work with a CPA regularly. This option suits complex businesses where professional presentation helps. It may show income more favorably after proper expense accounting.
Consider your record-keeping style and business complexity. Simple service businesses often prefer bank statements. Businesses with significant expenses may benefit from CPA-prepared P&L statements.
Yes, Bank Statement Loans accept personal or business accounts. Lenders prefer whichever shows your income most clearly. Some borrowers combine both types.
No, an audit isn't required. A CPA-prepared profit and loss statement is sufficient. The CPA must be licensed and may need to sign the document.
Rates vary by borrower profile and market conditions. Both programs price similarly as non-QM loans. Your credit score and down payment matter more than the program type.
Most non-QM programs require 10-20% down minimum. Larger down payments often secure better rates. Requirements are similar for both bank statement and P&L loans.
Yes, some lenders accept 12 months of bank statements. P&L loans may be more flexible with newer businesses. Requirements vary by lender and overall borrower strength.