Loading
in San Jose, CA
San Jose is packed with self-employed borrowers — founders, consultants, contractors. Traditional lenders keep rejecting them. These two loans exist to fix that.
Both are non-QM products. That means no tax returns, no W-2s. The difference is how each one measures your income.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average the deposits and apply an expense factor.
This works well if your bank accounts show strong cash flow. High revenue with high write-offs? This is often your best path.
P&L loans use a CPA-prepared profit and loss statement instead of bank statements. Your accountant documents your income directly.
Fewer months of records to pull together. But your CPA must prepare and sign the P&L — a random spreadsheet won't pass underwriting.
Bank statement loans reward cash flow. P&L loans reward clean bookkeeping. Neither is universally better — it depends on your business.
P&L loans can close faster when your CPA is organized. Bank statement loans often allow higher income calculations if deposits are strong.
If your tax write-offs gut your adjusted gross income, bank statements often show a truer picture of what you actually earn.
If your books are clean and your CPA is responsive, a P&L loan can be simpler. Fewer documents, faster turnaround.
Yes, most lenders accept personal accounts. Business accounts work too. Some lenders allow both to be combined.
The preparer must be a licensed CPA or tax professional. They sign the statement and take on liability for its accuracy.
Both are non-QM and priced above conventional rates. Rates vary by borrower profile and market conditions.
Most lenders require 12 months minimum. Some programs go 24 months for a stronger income average.
Yes, but it restarts parts of underwriting. It's cleaner to pick the right program upfront with a broker who knows both.
Absolutely. Single-client contractors and 1099 workers are exactly who these programs were built for.