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in Chino, CA
Self-employed borrowers in Chino often can't qualify with tax returns. Both of these non-QM loans solve that — but in different ways.
Bank Statement loans use your actual deposits to prove income. P&L loans use a CPA-prepared summary. The right choice depends on your records and how your business runs.
Bank Statement loans qualify you on 12 to 24 months of deposits. Lenders average those deposits and apply an expense factor to calculate your income.
This works well if your business runs through a dedicated account. Mixing personal and business deposits creates problems — lenders will ask questions.
P&L loans use a CPA-prepared profit and loss statement instead of bank statements. Your accountant documents your business income directly.
This is faster if your books are clean and your CPA is responsive. But the P&L must be prepared by a licensed CPA — not self-prepared.
Bank Statement loans take more time to underwrite — lenders review months of transactions. P&L loans move faster but shift scrutiny to your CPA's credibility.
Income calculation also differs. Bank statements show raw cash flow. A P&L shows net profit after expenses. Depending on your margins, one method will produce a higher qualifying income than the other.
If your business has strong, consistent deposits and a clean account, go with bank statements. You'll have more lenders competing for your loan.
If your net profit is high relative to revenue — and your CPA is reliable — a P&L loan gets you to the finish line with less paperwork. Talk to us before assuming one method produces better numbers.
Some lenders allow both as supporting documents. Usually one method is primary and drives the income calculation.
Most non-QM lenders want at least a 620, though requirements vary. Higher scores get better rates. Rates vary by borrower profile and market conditions.
Most lenders require 10% to 20% down on non-QM loans. Your down payment affects both rate and approval.
No. Lenders require a CPA-prepared statement. Self-prepared P&Ls are rejected at underwriting.
P&L loans can close faster if your CPA delivers quickly. Bank statement reviews take longer but depend on your lender's pipeline.
Bank statement loans have wider lender availability as of March 2026. More competition means more room to shop rates.