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in Lathrop, CA
Both bank statement and profit & loss loans let self-employed Lathrop borrowers qualify without tax returns. The difference comes down to how you document income and which structure matches your business setup.
Most self-employed borrowers in San Joaquin County pick one based on how they manage their books. Some run everything through business accounts. Others mix personal and business expenses.
Bank statement loans use 12 or 24 months of personal or business bank statements to calculate income. Lenders average your deposits and apply an expense factor, typically 25% to 50%, depending on your business type.
You don't need a CPA or formal financial statements. The underwriter analyzes your bank statements directly, looking at deposit patterns and cash flow consistency.
This works well for Lathrop contractors, real estate agents, and small business owners who keep simple books. You need steady deposits and clean banking history.
Profit & loss statement loans require a CPA-prepared P&L covering 12 to 24 months. Your accountant signs off on the numbers, and lenders use that income figure for qualification.
This route demands formal bookkeeping and a licensed CPA relationship. The P&L must follow standard accounting practices and match your business structure.
Most San Joaquin County borrowers using P&L loans run established businesses with complex finances. This includes multi-member LLCs, S-corps, or businesses with significant write-offs.
The core split is documentation complexity. Bank statements show raw cash flow. P&L statements show business profitability after accounting for all expenses and adjustments.
Bank statement loans typically cost less upfront since you skip CPA fees. P&L loans may qualify you for higher amounts if your accountant structures income favorably.
Approval speed differs too. Bank statement reviews take 3-5 days. P&L loans need CPA coordination, adding a week or more if your books aren't current.
Choose bank statements if you keep straightforward books and want faster approval. This works for sole proprietors, gig workers, and small operators without formal accounting.
Go with P&L if you already work with a CPA and have detailed books. This makes sense for established Lathrop businesses with multiple revenue streams or complex expense structures.
Both programs accept lower credit scores than conventional loans and work for investment properties in San Joaquin County. Rates vary by borrower profile and market conditions.
Yes, but it restarts underwriting. You'll need to provide the P&L and wait for CPA certification before moving forward.
Most lenders want 10-20% down for primary homes, more for investment properties. Exact requirements depend on credit score and property type.
Depends on your specific numbers. Bank statements may show more income if you have high deposits. P&L can work better with strategic expense deductions.
Yes, bank statement loans accept either or both. Lenders combine accounts to calculate total qualifying income.
Most lenders require 12-24 months. Your CPA must sign and certify the statement using their license number.