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in Saratoga, CA
Saratoga attracts high-earning self-employed buyers. Tax returns rarely show what these borrowers actually make.
Two non-QM options solve that problem differently. Bank statement loans use your deposits. P&L loans use your CPA's numbers.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits and apply an expense factor.
This works well if your accounts show consistent, high cash flow. Mixing personal and business accounts can complicate the calculation.
P&L loans rely on a CPA-prepared profit and loss statement, typically covering 12 to 24 months. No bank statements required.
Your CPA certifies the numbers. Lenders use your net profit to qualify you. This works well when deposits are irregular but profitability is clear.
Bank statement loans require more raw documentation. P&L loans require less paper but more CPA involvement.
Lenders generally view bank statement loans as lower risk. That often means slightly better rates. Rates vary by borrower profile and market conditions.
If your business account shows strong, consistent deposits, go with bank statements. The math works in your favor.
If your deposits are messy or hard to track, a clean CPA-prepared P&L can present your income more accurately. Talk to your accountant first.
Yes, many lenders accept personal statements. The expense factor applied is usually lower, which can increase your qualifying income.
Most lenders require a P&L dated within 60 days of application. Your CPA needs to be available and licensed.
Bank statement loans typically price better. P&L loans carry more lender risk. Rates vary by borrower profile and market conditions.
Yes. Most non-QM lenders require at least a 620 score. Higher scores get meaningfully better pricing on both programs.
Some lenders allow it. Using both can strengthen your file if either method alone falls short of the income needed.
Yes. Non-QM lenders routinely go to jumbo loan amounts. Saratoga's price range is well within what these programs can handle.