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in Poway, CA
Most Poway self-employed buyers can't qualify the traditional way. Tax returns show too little income after write-offs.
Two non-QM options solve that problem: bank statement loans and P&L loans. Both work — but they suit different borrowers.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average those deposits and apply an expense factor.
This works best when your business account shows strong, consistent cash flow. High deposit volume gives you the most buying power here.
P&L loans use a CPA-prepared profit and loss statement — typically covering 12 to 24 months. Your accountant documents your net income directly.
This fits borrowers whose deposits look messy but whose actual profit is solid. The CPA's numbers do the heavy lifting.
Bank statement loans pull income from raw deposit data. P&L loans rely on an accountant's prepared figures. These can produce very different qualifying income numbers.
P&L loans often close faster — there's no manual averaging of months of transactions. But lenders scrutinize CPA-prepared statements closely, so the P&L must be airtight.
If you run a Poway business with high gross revenue and clean business bank accounts, the bank statement route often gets you more income. Volume matters here.
If your deposits are irregular — maybe you sweep funds between accounts or collect in batches — a CPA-prepared P&L can tell a cleaner story. Talk to your accountant first.
Yes. A good broker runs your scenario both ways before submitting. We do that for every self-employed client we work with.
It must come from a licensed CPA. Lenders won't accept self-prepared statements — the CPA's credentials get verified.
Most lenders want 12 months minimum. Some programs require 24 months for the best rates and terms.
Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620. Better scores get better pricing on both bank statement and P&L programs.
Some lenders allow personal statements. It depends on how your income flows — your broker will tell you which qualifies you for more.