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in Los Gatos, CA
Self-employed buyers in Los Gatos rarely qualify with tax returns alone. Both these non-QM loans solve that — differently.
Non-QM means the loan doesn't follow Fannie Mae or Freddie Mac rules. Lenders set their own income verification standards.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders apply an expense factor to estimate what you actually net.
You hand over business or personal bank statements. No tax returns, no W-2s, no CPA sign-off required.
P&L loans rely on a profit and loss statement prepared by a licensed CPA. That document becomes your income proof.
Only 12 months of business history is typically needed. This works well for newer businesses with strong recent revenue.
Bank statement loans give you control. Your deposit history speaks for itself — no third party interprets your numbers.
P&L loans move faster. One CPA document replaces months of statements. But your CPA's numbers have to hold up to lender scrutiny.
Choose bank statements if your deposits are high and your CPA has aggressively reduced taxable income. The raw cash flow tells a better story.
Choose a P&L loan if your business is younger or your bank statements include a lot of noise — transfers, refunds, irregular deposits.
Yes. Both are non-QM products with loan limits set by individual lenders. Many go well above conforming caps, which matters in Los Gatos.
Rates vary by borrower profile and market conditions. Neither is consistently cheaper — your credit score and down payment matter more.
Most lenders allow personal statements. Business statements often show higher income, so it depends on how your cash flows.
Yes. Lenders require a CPA or licensed tax professional to prepare the statement. A bookkeeper's P&L won't cut it.
Both are non-QM and typically close in 21 to 30 days. P&L loans can move faster if your CPA is responsive.
Most non-QM lenders want at least a 620 to 660 score. Stronger credit means better terms on both programs.