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in San Bernardino, CA
Self-employed borrowers in San Bernardino have two strong options for income verification. Bank Statement Loans and Profit & Loss Statement Loans both offer paths to homeownership without traditional W-2s.
Both are Non-QM loans designed for business owners and freelancers. The main difference is how you prove your income. Your choice depends on your record-keeping style and financial documentation.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders review your deposits to calculate average monthly income. This approach works well if you have consistent cash flow.
You don't need tax returns or formal financial statements. The bank simply analyzes your actual deposits over time. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans rely on CPA-prepared financial statements to document income. Your accountant creates a P&L showing business revenue and expenses. This method suits borrowers who maintain formal business records.
You'll need a licensed CPA to prepare your profit and loss statement. This adds a step but provides a clean, professional income picture. Rates vary by borrower profile and market conditions.
Bank Statement Loans are simpler if you don't work with a CPA regularly. You just provide your bank statements directly. P&L Loans require an accountant's involvement, adding cost but also credibility.
Documentation timeline differs too. Bank statements show a 12-24 month track record of actual deposits. P&L statements can cover various periods and show business structure more clearly. Both verify self-employment income without tax returns.
Choose Bank Statement Loans if you prefer simplicity and already track deposits carefully. This works well for freelancers and contractors who manage their own books. No accountant needed means less upfront cost.
Pick P&L Statement Loans if you maintain formal business accounting and work with a CPA. This suits established businesses with complex finances. The professional preparation can strengthen your application for larger loan amounts.
Yes, you can use personal or business bank statements. Lenders accept either type as long as they show 12-24 months of deposit history.
Your CPA must be licensed and in good standing. Most lenders require the accountant to sign and certify the profit and loss statement.
Rates vary by borrower profile and market conditions. Neither loan type inherently offers better rates. Your credit score and down payment matter more.
Yes, both Bank Statement and P&L Loans can finance investment properties in San Bernardino. Non-QM lenders offer flexible property type options.
Bank Statement Loans may close slightly faster since no CPA prep is needed. Both typically take 30-45 days depending on documentation quality.