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in Loma Linda, CA
Self-employed borrowers in Loma Linda have two main paths to home financing. Bank Statement Loans and Profit & Loss Statement Loans both help when traditional income verification doesn't work.
These Non-QM mortgage options serve business owners, freelancers, and entrepreneurs. Each approach verifies income differently. Understanding the differences helps you choose the right loan for your situation.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders review deposits to calculate your average monthly income. This approach works well if you have consistent cash flow.
No tax returns or CPA-prepared statements are required. Your bank statements tell your income story. This option is ideal for borrowers who take many business deductions that lower taxable income.
Profit & Loss Statement Loans rely on CPA-prepared financial documents to verify income. Your accountant creates a detailed P&L showing business revenue and expenses. This formal approach may satisfy lenders seeking professional documentation.
You'll need a licensed CPA to prepare your statement. The P&L must accurately reflect your business performance. This option works best if you already work with a CPA for your business finances.
The main difference is documentation type. Bank Statement Loans use actual deposit records from your account. Profit & Loss Loans require formal statements prepared by a certified accountant.
Bank Statement Loans are often faster since you provide existing documents. P&L Loans need time for CPA preparation. Cost differs too—bank statements are free, while CPAs charge for their services.
Both options serve self-employed borrowers in San Bernardino County. Rates vary by borrower profile and market conditions. Your credit score, down payment, and business stability affect your rate with either loan type.
Choose Bank Statement Loans if you want simpler documentation. This works well for borrowers with steady deposits and no CPA relationship. It's faster and eliminates accountant fees.
Pick Profit & Loss Loans if you already use a CPA for business finances. This option makes sense when professional documentation strengthens your application. Some lenders prefer the formal approach a P&L provides.
Consider your timeline and resources. Bank statements are immediately available. P&L preparation takes time and money. Both can help you buy a home in Loma Linda despite non-traditional income.
Yes, most lenders accept either personal or business bank statements. Some allow a combination of both. Your lender will review deposits to calculate qualifying income.
CPA preparation typically takes one to two weeks. Timing depends on your accountant's schedule and document availability. Plan ahead to avoid delays in your loan process.
Neither automatically offers better rates. Rates vary by borrower profile and market conditions. Your credit, down payment, and financial strength matter most for both loan types.
Most lenders require at least two years of self-employment history. Some may accept one year with strong financials. Requirements vary by lender and loan program.
Yes, you can change your application approach during the process. Discuss options with your mortgage broker. They'll help determine which documentation path works best for you.