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in Millbrae, CA
Millbrae sits in San Mateo County, where the 2026 conforming loan limit is $1,249,125. Self-employed buyers here often choose between bank statement loans and profit-and-loss statement loans. Both let you prove income without W-2s.
Bank statement loans rely on your actual deposits. P&L loans use your tax return's bottom line. In Millbrae's active market, where median household income runs $156,000 countywide, either path can work.
Downtown San Mateo just welcomed Reposado, a fine-dining Mexican restaurant opening in February 2026. That's the kind of business owner who might use these loans.
Bank statement loans let you prove income by showing your business bank deposits. Lenders average your deposits over 12 or 24 months. They don't care what your tax return says. If your deposits are clean and consistent, this path moves fast.
You'll typically need a 620 FICO minimum, though 640+ is safer. Down payment ranges from 10% to 25% depending on the lender and your deposit history. Closing happens in 21 to 30 days.
P&L statement loans use your filed tax return to calculate income. The lender takes your net profit from Schedule C or your business's bottom line. This method is familiar to underwriters and often carries a lower rate than bank statement loans.
You'll need a 640+ FICO and typically 15% to 25% down. The catch: your tax return must match your lifestyle. If you've deducted heavily to reduce taxes, your stated income drops.
Bank statement loans close in three weeks. P&L loans take six weeks. If you're in a bidding war in Millbrae, speed wins. Bank statements also ignore what you deducted on your taxes. P&L loans reward low tax deductions but punish aggressive write-offs.
Rates favor P&L loans when your tax return is clean. Bank statement loans cost more because deposits are harder to verify. Down payment requirements overlap, but bank statement lenders may accept 10% if your deposits are strong.
The real difference: bank statements work for cash businesses and recent tax filers. P&L loans work for established businesses with solid returns.
Choose bank statement loans if you've been in business less than two years or your tax return doesn't reflect your actual income. You're also a fit if you need to close fast.
Choose P&L loans if you've filed returns for three or more years and your net profit is solid. Your tax return should show income close to what you actually earn.
No. Your tax return doesn't need to be perfect, but it should show net profit close to your actual income. Heavy deductions reduce your stated income. If you deducted $50,000 in expenses but actually earned $200,000, the lender sees $150,000.
Most lenders average 12 or 24 months of deposits. Some require 24 months of history. If you've been in business less than a year, bank statement loans may not work. P&L loans require at least two years of filed returns, ideally three.
Bank statement loans close in 21 to 30 days. P&L loans take 30 to 45 days because the lender verifies your tax return. If you're competing for a home in Millbrae's market, bank statements give you a two-week edge.
Yes. Some lenders will review both and use whichever shows stronger income. This takes longer and costs more in application fees. Most borrowers pick one path. Bank statements if you're newer; P&L if you're established.
Bank statement loans typically start at 620 FICO, though 640+ is safer. P&L loans usually require 640 or higher. Both programs favor scores above 660.