Loading
in Palm Springs, CA
Self-employed borrowers in Palm Springs have two strong options for non-QM mortgages. Bank statement loans and profit & loss statement loans both help entrepreneurs qualify without traditional W-2 income.
These loan programs serve business owners, freelancers, and contractors throughout Riverside County. Each uses a different method to verify your income and qualifications.
Bank statement loans use 12 to 24 months of personal or business bank statements to verify income. Lenders calculate your monthly income from deposits rather than tax returns.
This option works well if you take many business deductions that reduce taxable income. Your actual cash flow matters more than what you report to the IRS.
Rates vary by borrower profile and market conditions. Most programs require statements from one or two years of banking activity.
Profit & loss statement loans require a CPA-prepared P&L statement to document your business income. This provides a professional accounting view of your earnings.
Your certified public accountant creates the statement showing revenue and expenses. Some lenders may also request additional financial documentation.
Rates vary by borrower profile and market conditions. This option offers a more traditional business-focused approach to income verification.
The main difference lies in documentation requirements and preparation time. Bank statement loans need your actual banking records from 12 to 24 months.
Profit & loss loans require working with a CPA to prepare official statements. This adds a professional layer but may take more time to arrange.
Bank statement loans often close faster since you already have the documents. P&L loans may offer advantages if you have established CPA relationships.
Choose bank statement loans if you want quick documentation and have consistent deposits. This works best when your bank activity clearly shows strong income.
Profit & loss loans suit borrowers who already work with CPAs and maintain detailed business records. This approach may strengthen your application with professional documentation.
Consider your business structure, record-keeping practices, and timeline. Both programs serve Palm Springs self-employed borrowers with flexible income verification.
Yes, most bank statement loan programs accept either personal or business bank statements. Some lenders allow you to use both to show the full picture of your income.
Timeline varies by CPA workload and your record quality. Typically it takes one to three weeks. Having organized financial records speeds up the process significantly.
Rates vary by borrower profile and market conditions for both programs. Your credit score, down payment, and overall financial strength matter more than the documentation type.
No, bank statement loans do not require CPA involvement. You simply provide your bank statements directly to the lender for income calculation.
Yes, you can often switch if one program works better for your situation. Discuss options with your mortgage broker to find the best fit for your needs.