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in Stockton, CA
Self-employed borrowers in Stockton hit the same wall: tax returns show minimal income after write-offs. Both bank statement and P&L loans solve this problem differently.
Bank statement loans use deposits to prove income. P&L loans rely on a CPA's financial statement. The right choice depends on how you run your books and what's easiest to provide.
Bank statement loans analyze 12 to 24 months of business or personal bank statements. Lenders calculate your average monthly deposits and use that as qualifying income.
This works best if you deposit most revenue into one account. Lenders typically use 50% of deposits for personal accounts or higher percentages for business accounts. You avoid the CPA cost but need clean banking records.
P&L statement loans require a CPA-prepared profit and loss statement covering 12 to 24 months. Your accountant signs off on business income and expenses to establish qualifying income.
This route makes sense if your deposits are scattered across accounts or include non-income transfers. The CPA statement consolidates everything into one clean income figure. You pay for the CPA work upfront.
Bank statement loans look at raw deposits. P&L loans look at net profit after expenses. If you write off aggressively, bank statements usually show higher qualifying income.
Documentation speed differs too. Most borrowers already have bank statements but need weeks to get a CPA-prepared P&L. Rates vary by borrower profile and market conditions, but pricing is similar between both programs.
Choose bank statement loans if most income flows through one or two accounts and you want to avoid CPA costs. Choose P&L loans if deposits are messy, you mix business and personal funds, or your accountant already tracks detailed financials.
Many Stockton self-employed borrowers qualify under both programs. We run scenarios with each method to see which produces better buying power. Sometimes bank statements show 30% more qualifying income than a P&L.
No. Lenders use one income documentation method per loan. We choose whichever shows higher qualifying income for your situation.
Yes. Most non-QM lenders want 620 minimum for either program. Higher scores get better rates on both.
Bank statement loans close faster because you already have the statements. P&L loans add 2-3 weeks for CPA preparation.
Yes, but it restarts underwriting. Better to compare both options before choosing. We analyze which fits your books upfront.
No. Both programs work for sole proprietors, contractors, and business owners. You just need consistent self-employment income to document.