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in National City, CA
National City self-employed borrowers have two main paths to mortgage approval without tax returns. Both options qualify you based on business income, but they require different documentation and suit different business structures.
Your choice depends on how your business handles accounting and whether you want a CPA involved. One route uses raw deposits, the other uses prepared financials.
Bank statement loans calculate income directly from 12 or 24 months of business or personal bank statements. Lenders apply a percentage to your total deposits after removing transfers and non-income items.
You need consistent deposits and statements from the same institution. No CPA required. This works well if you run lean on paper but deposit strong cash flow monthly.
Most programs use 50% of deposits as qualifying income for personal accounts, 100% for business accounts. Credit scores typically start at 620, with 10-20% down depending on loan amount.
P&L statement loans use a CPA-prepared profit and loss statement covering 12-24 months of business activity. The lender qualifies you on net business income shown on the P&L.
Your CPA must be licensed and may need to provide a comfort letter. Some lenders also require a balance sheet or year-to-date P&L if you're applying mid-year.
This route works when you already maintain formal books and have an established CPA relationship. Credit and down payment requirements mirror bank statement programs.
Bank statement loans look at gross deposits. P&L loans look at net profit. If your business runs high revenue but tight margins, bank statements usually qualify you for more.
P&L loans require paying a CPA to prepare statements, adding cost and time. Bank statements just need PDFs from your account, which you likely already have.
P&L programs sometimes accept shorter seasoning if your business is newer but you have formal books. Bank statement lenders want consistent 12-month deposit patterns with no exceptions.
Choose bank statements if you deposit strong revenue but write off most profit, or if you don't have a CPA relationship. This path is faster and shows higher qualifying income for cash-heavy businesses.
Choose P&L if you already maintain audited books, show solid net income, or run a business where deposits don't reflect true revenue. Professional services and businesses with complex accounting often fit better here.
National City borrowers in construction, retail, or food service typically get better results with bank statements. Consultants and established corporations often prefer the P&L route.
Yes, but business accounts qualify at 100% of deposits while personal accounts use 50%. Lenders prefer whichever shows stronger income.
The CPA must hold an active license in any U.S. state. Most lenders also require they've prepared your statements for at least one full year.
Rates are nearly identical since both are non-QM loans. Your credit score and down payment matter more than documentation type.
Yes, but it restarts underwriting and delays closing. Choose your documentation path before applying to avoid timeline issues.
Most programs want 12-24 months in the same business or industry. Newer businesses under 12 months rarely qualify for either option.