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in Perris, CA
Self-employed borrowers in Perris have two strong options for mortgage financing. Both Bank Statement Loans and Profit & Loss Statement Loans are Non-QM products designed for business owners and independent contractors.
These loan programs help you qualify without traditional W-2 income documentation. Each uses different methods to verify your earnings. Choosing the right one depends on your business structure and record-keeping practices.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to calculate your qualifying income. This option works well if you don't have formal financial statements prepared.
You submit bank statements instead of tax returns or pay stubs. The lender reviews consistent deposits to determine your earning capacity. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans rely on CPA-prepared financial statements to document your income. Your accountant creates a formal P&L showing business revenue and expenses. This approach mirrors traditional lending but uses different documentation.
You'll need a licensed CPA to prepare your profit and loss statement. The statement must show clear earnings after business expenses. Rates vary by borrower profile and market conditions.
The main difference lies in documentation requirements. Bank Statement Loans analyze raw deposit data over 12-24 months. Profit & Loss Loans require professionally prepared financial statements from a certified accountant.
Cost and preparation vary significantly between these options. Bank statements are records you already have available. P&L statements require hiring a CPA to prepare formal documentation, which adds expense and time.
Lenders may view these programs differently based on your situation. Bank Statement Loans offer faster processing with existing records. P&L Loans may appeal to borrowers with established accounting relationships and complex business structures.
Choose Bank Statement Loans if you have consistent deposits but no CPA relationship. This works well for freelancers, gig workers, and small business owners. You can move faster without waiting for professional statements to be prepared.
Select Profit & Loss Statement Loans if you already work with a CPA. Established businesses with formal accounting often prefer this route. The professional documentation may provide clearer income pictures for complex business models.
Both programs serve self-employed borrowers in Perris and throughout Riverside County. Consider your existing record-keeping, relationship with accounting professionals, and timeline. A qualified mortgage broker can help you evaluate which fits your specific situation best.
Typically, you choose one verification method. Some lenders may accept both, but most programs require you to select either bank statements or P&L documentation as your primary income proof.
Rates vary by borrower profile and market conditions. Neither program consistently offers better rates. Your credit score, down payment, and overall financial picture matter more than the documentation type.
Bank Statement Loans require 12 to 24 months of statements. Most lenders prefer 24 months for stronger qualification. The longer history provides better income consistency verification.
No, Bank Statement Loans don't require CPA involvement. You simply provide your bank statements directly. This makes the process simpler and less expensive for many borrowers.
Yes, both loan programs are available in Perris and throughout Riverside County. These Non-QM options work for self-employed borrowers across the entire region.