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in San Bruno, CA
Self-employed buyers in San Bruno face a documentation choice when qualifying for a mortgage. You can use bank statements or a CPA-prepared profit and loss statement to prove income.
Both are non-QM loans designed for business owners who write off heavy expenses. The right choice depends on how you track income and what documentation you already have.
Bank statement loans analyze 12 to 24 months of personal or business account deposits. Lenders calculate your qualifying income as 50% to 100% of average monthly deposits.
This works well if your business runs cash through your accounts consistently. No CPA required — just pull your statements and upload them. Processing moves faster since there's no waiting on a prepared P&L.
P&L statement loans require a certified public accountant to prepare a year-to-date or 12-month profit and loss report. Lenders underwrite based on that bottom line, not your tax returns.
This route makes sense if you already work with a CPA for your business. You get credit for profitability even when deposits fluctuate or cash flow is uneven month to month.
Bank statement loans look at cash flow — what moves through your accounts. P&L loans focus on profitability after business expenses. If you deposit $20k monthly but show $8k profit, bank statements give you more buying power.
Documentation effort differs sharply. Bank statements require no accountant — just download PDFs from your institution. P&L loans need a licensed CPA to certify the numbers, which adds cost and time.
HousingWire just covered new products that let borrowers use crypto holdings for qualification. That same shift toward alternative assets makes bank statement underwriting more flexible than traditional P&L review.
Choose bank statements if you run cash through your accounts consistently and don't use a CPA. This works for contractors, consultants, and small operators who handle their own books.
Go with a P&L if you already pay an accountant or your deposits swing wildly month to month. Seasonal businesses and companies with lumpy revenue cycles often qualify for more this way.
San Bruno prices demand strong income documentation either way. Run both scenarios before deciding — some borrowers qualify higher under bank statements, others under P&L.
No. Lenders underwrite to one income method per loan. You choose bank statements or P&L, not both.
Rates are similar — both are non-QM products priced on risk profile. Your credit score and down payment matter more than documentation type.
Most lenders accept 12 months. Some require 24 if your income is inconsistent or you're maxing out debt ratios.
No audit required. The CPA must prepare and certify the statement, but a full audit adds cost without improving approval odds.
Yes, but it restarts underwriting. Pick your documentation method upfront to avoid delays closing your San Bruno purchase.