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in Los Altos Hills, CA
Self-employed borrowers in Los Altos Hills have two strong non-QM options. Neither requires tax returns or W-2s.
Bank statement loans and P&L loans both verify income differently. Choosing the wrong one can cost you the deal.
Bank statement loans use 12 to 24 months of deposits to prove income. Lenders average your deposits and apply an expense ratio.
This works well if your business accounts show strong, consistent cash flow. Gaps or large irregular deposits can create problems.
P&L loans use a CPA-prepared profit and loss statement instead of bank records. Your accountant documents net income directly.
This route works when deposits don't tell the full story. It is faster to pull together than two years of statements.
Bank statement loans require more documentation but give lenders raw cash flow data. P&L loans rely on a CPA's professional summary.
Underwriters scrutinize P&L loans more closely. A poorly prepared statement can kill the file. A strong CPA matters here.
Pick bank statements if you have clean business accounts and two years of solid deposits. The paper trail speaks for itself.
Pick the P&L route if your deposits are messy or your CPA can show higher net income than deposits suggest.
Yes. Most lenders accept personal statements. Expect a higher expense ratio applied to your deposits, which lowers qualifying income.
They must be a licensed CPA. Some lenders also require the CPA to have prepared your taxes. Confirm this before starting.
Rates vary by borrower profile and market conditions. Neither program consistently prices better — lender overlays matter more.
Some lenders allow both. Using both can strengthen income verification. Ask your broker which lender programs permit this.
Most non-QM lenders want at least a 620. Higher scores get better pricing on both bank statement and P&L programs.
Most lenders require a P&L covering the last 12 to 24 months. It must be current and signed by a licensed CPA.