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in Brisbane, CA
Self-employed buyers in Brisbane face a choice: prove income with bank statements or a CPA-prepared P&L. Both are non-QM options built for business owners who can't show W-2s. The right choice depends on how you run your books and what documentation you already have.
Bank statement loans pull deposits from 12-24 months of statements. P&L loans rely on a profit and loss report signed by your accountant. Each route has different approval speeds, credit requirements, and costs.
Bank statement loans review your deposits over 12 or 24 months. Lenders calculate average monthly income, then factor in business expenses. You skip the CPA step entirely. Most programs accept personal or business accounts.
Credit minimums start at 620, though 680+ gets better rates. Expect 10-20% down depending on loan amount. Approval takes 3-4 weeks if your statements are clean and show consistent deposits.
P&L loans use a CPA-prepared profit and loss statement, usually covering 12-24 months. Your accountant signs off on income figures. Lenders verify the CPA's license and review your tax returns to confirm the numbers align.
This works well if you write off heavy expenses that reduce taxable income. Credit requirements mirror bank statement loans: 620 minimum, better rates at 680+. Down payment ranges from 10-25% based on income stability and property type.
Bank statements show raw cash flow. P&L statements show net profit after expenses. If you deposit $20k monthly but write off $12k in costs, bank statements reflect $20k. A P&L shows $8k. That difference changes how much you qualify for.
Processing speed differs too. Bank statement loans close faster because there's no CPA coordination. P&L loans add 1-2 weeks for accountant prep and lender verification. Rates are similar across both programs—expect 1-2% above conventional.
Choose bank statements if you run a cash-heavy business, keep minimal records, or need to close quickly. This works for contractors, consultants, and service providers who deposit most of what they earn. Skip this if you co-mingle personal and business funds heavily.
Go with P&L if you write off major expenses, work with a CPA year-round, and your tax returns show lower income than actual cash flow. This suits Brisbane buyers with rental properties, equipment-heavy businesses, or complex deductions. Be ready to wait longer for approval.
No. Lenders pick one income verification method per loan. You can't combine them. Choose the route that shows your income strongest.
Yes. Non-QM loans run 1-2% higher in rate. Expect an extra $200-400 monthly on a $1M Brisbane home compared to conventional.
Most programs require 12 months. Some lenders offer 24-month options for borrowers with fluctuating income or recent business growth.
Your CPA must hold an active license in California. Lenders verify this directly. Unlicensed bookkeepers don't qualify.
Switching resets underwriting timelines. Decide upfront based on which documentation shows stronger qualifying income for your situation.