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in Manteca, CA
Most self-employed borrowers in Manteca hit the same wall: great income, messy tax returns. Both bank statement and P&L loans solve this, but they pull income data from different sources.
Bank statement loans use your deposits to calculate qualifying income. P&L loans use a CPA-prepared financial statement. One route requires no accountant; the other requires one you trust.
Bank statement loans let you qualify using 12 or 24 months of business or personal bank statements. Lenders calculate income by averaging your monthly deposits, then applying an expense factor—typically 25% to 50%.
You don't need a CPA or audited financials. Just clean bank statements that show consistent deposits. This works best for contractors, real estate agents, and Manteca small business owners who write off most income.
P&L loans require a profit and loss statement prepared by a licensed CPA. The statement shows your business income and expenses over 12 or 24 months. Lenders use the net profit as your qualifying income.
You need an ongoing relationship with a CPA who knows your books. This route works well for established businesses with clean financials and professionals who already produce quarterly P&Ls for planning.
Bank statement loans look at gross deposits minus an expense estimate. P&L loans look at actual net profit your accountant reports. If your CPA shows strong margins, the P&L route gives you higher qualifying income.
Bank statements are faster to gather—just download PDFs from your bank. P&Ls take longer because your CPA must prepare and sign them. Expect two to three weeks if your books aren't current.
Use bank statement loans if you don't have a CPA or your books are behind. They're faster and require less prep. Use P&L loans if you already work with an accountant and your margins look better than a 50% expense estimate.
For Manteca buyers who mix business and personal expenses in one account, bank statements work better. For those with separate business accounts and clean P&Ls, the P&L route often qualifies you for more house.
No. Lenders pick one income documentation method per file. You choose the route that shows stronger qualifying income.
Rates are nearly identical—both are non-QM products. Your credit score and down payment matter more than which income doc you use.
Most lenders want two years of self-employment history. Some accept one year if you worked in the same industry before going solo.
A net loss disqualifies you for P&L loans. Switch to bank statements if deposits show you're actually making money despite write-offs.
Yes. Many Manteca self-employed borrowers use personal accounts. Lenders still apply an expense factor to estimate business costs.