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in San Jacinto, CA
Self-employed borrowers in San Jacinto have two strong options for mortgage financing. Both Bank Statement Loans and Profit & Loss Statement Loans serve business owners who can't verify income traditionally.
These non-QM loan programs help entrepreneurs and freelancers qualify for home financing. Each uses different documentation to prove your ability to repay. Understanding which fits your situation can speed up your approval process.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders analyze deposits to calculate your average monthly income. This option works well if you have consistent cash flow.
You don't need tax returns or formal financial statements prepared by a CPA. The underwriter reviews your bank activity to determine qualification. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans require a CPA-prepared P&L statement to document your business income. This formal financial document shows revenue minus expenses. Many business owners already maintain these records for their operations.
Your accountant prepares the P&L statement showing your business profitability. Lenders use this professional documentation to assess your income stability. Rates vary by borrower profile and market conditions.
The main difference is documentation type. Bank Statement Loans rely on deposit history over 12-24 months. P&L Statement Loans need professionally prepared financial statements from your CPA.
Bank Statement Loans may be faster if you have statements ready. P&L Statement Loans require time to prepare formal documents. Cost differs too, since you'll pay your CPA for P&L preparation.
Income calculation methods vary between programs. Bank statements show raw deposits that get adjusted for business expenses. P&L statements already separate business income from expenses professionally.
Choose Bank Statement Loans if you want simpler documentation without CPA involvement. This works great for freelancers and contractors with steady deposits. You'll save on accounting fees and potentially close faster.
Pick P&L Statement Loans if you already maintain formal business records with an accountant. This option suits established businesses with complex finances. The professional documentation may strengthen your application with some lenders.
Your choice depends on your record-keeping style and business structure. Talk with a San Jacinto mortgage broker about your specific situation. They can review your documentation and recommend the best fit for Riverside County financing.
Most lenders accept either personal or business bank statements for Bank Statement Loans. Some allow you to combine both. Your broker will advise based on your deposit patterns.
Most lenders require a CPA licensed in the United States to prepare your P&L statement. California licensing is preferred but not always mandatory. Check with your lender for their specific requirements.
Rates vary by borrower profile and market conditions for both programs. Neither consistently offers lower rates. Your credit score, down payment, and income stability matter more than loan type.
Bank Statement Loans typically require 12 or 24 months of consecutive statements. Most lenders prefer 24 months for stronger income documentation. Recent months carry the most weight in calculations.
Yes, you can switch documentation types if your situation changes. Many San Jacinto borrowers start with one and move to another. Your broker can help you pivot if needed.