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in Dunsmuir, CA
Both bank statement loans and P&L statement loans let self-employed borrowers qualify without tax returns. The main difference is how you prove income—one uses your actual bank deposits, the other uses a CPA's financial statement.
Most self-employed buyers in Dunsmuir fit one option better than the other. Your business structure and how you run your books usually decide which path makes sense.
Bank statement loans use 12 or 24 months of your business or personal bank statements to calculate income. Underwriters average your deposits and apply an expense ratio to estimate your qualifying income.
This works well if you run money through your accounts consistently but write off most profits on taxes. You don't need a CPA or formal books—just regular bank statements showing steady deposits.
P&L statement loans use a profit and loss statement prepared by a licensed CPA to document your income. The CPA signs off on your business earnings, which becomes your qualifying income for the mortgage.
This path makes sense if you keep clean books and work with an accountant regularly. You need a CPA relationship and organized financials—but you avoid sharing raw bank statements with lenders.
Bank statement loans look at actual cash flow through your accounts. P&L loans look at your accountant's version of business income. The bank statement route is faster if you don't use a CPA, but it may show lower income after expense adjustments.
P&L loans often qualify you for more if your books show strong profit margins. But you need a licensed CPA and organized records. Bank statement loans work for borrowers who handle their own books or don't want to involve an accountant.
Choose bank statement loans if you write off most income on taxes, don't use a CPA, or want faster processing. Choose P&L loans if you keep formal books, work with an accountant, and your profit margins are strong on paper.
Most contractors and service providers in Dunsmuir fit the bank statement path better. If you run a retail business or rental property portfolio with clean accounting, the P&L route often qualifies you for more house.
Yes. Most lenders accept either personal or business accounts for bank statement loans. We usually choose whichever shows more consistent deposits.
Yes. The CPA must hold an active license in any US state. Most lenders verify the license before accepting the P&L statement.
Rates are similar—both are non-QM loans priced on risk factors like credit and down payment. The income documentation method doesn't change your rate much.
Usually not without restarting underwriting. Pick your income documentation method before applying. Switching approaches adds weeks to your timeline.
Most lenders want a year-to-date P&L plus prior year. Your CPA needs at least 12-24 months of business records to prepare the statement confidently.