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in Rialto, CA
Self-employed borrowers in Rialto have two strong options for home financing. Both Bank Statement Loans and Profit & Loss Statement Loans serve business owners who can't provide traditional income proof.
These non-QM mortgage products help entrepreneurs buy or refinance homes in San Bernardino County. Each option uses different documentation to verify your income. Understanding the differences helps you choose the right path.
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 earnings. This works well if you have consistent banking activity.
You don't need tax returns or CPA-prepared documents. The process is straightforward for borrowers who deposit income regularly. 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 accounting approach may work better if you have complex business finances. Your accountant must prepare the statement following standard practices.
This option suits borrowers who already work with a CPA for their business. The professional documentation can sometimes support higher loan amounts. Rates vary by borrower profile and market conditions.
The main difference is documentation type. Bank Statement Loans rely on actual deposits over time. P&L Statement Loans use formal accounting reports from a certified professional.
Bank Statement Loans often close faster since you provide existing documents. P&L Statement Loans require hiring a CPA if you don't have one. Cost and timeline vary based on your current record-keeping system.
Both serve self-employed Rialto borrowers who write off business expenses. Neither requires traditional W-2 income verification. Your choice depends on which documentation you already have or can easily obtain.
Choose Bank Statement Loans if you want faster processing and already maintain organized bank records. This works for sole proprietors and small business owners with straightforward finances. You'll save on CPA preparation fees.
Choose P&L Statement Loans if you have a CPA relationship and complex business structures. This option suits established businesses with formal accounting systems. The professional documentation may strengthen your application for larger loan amounts.
Talk to a Rialto mortgage broker about your specific situation. They can review your documentation and recommend the best fit. Both options help self-employed borrowers achieve homeownership in San Bernardino County.
Most lenders accept either personal or business bank statements for Bank Statement Loans. Some allow a combination of both. Your lender will clarify which accounts work best for your situation.
No, you only need a CPA-prepared profit and loss statement, not a complete audit. The CPA must certify the document, but this is less extensive than a formal audit.
Rates vary by borrower profile and market conditions for both loan types. Your credit score, down payment, and business stability matter more than the loan type itself.
Most Bank Statement Loans require 12 to 24 months of consecutive statements. Longer histories may help borrowers with variable income patterns.
Yes, you can usually switch if one option suits your documentation better. Discuss this early with your lender to avoid delays in closing.