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in Tulelake, CA
Self-employed borrowers in Tulelake have two solid paths to mortgage approval without traditional W-2 documentation. Both bank statement loans and P&L statement loans verify your income differently than conventional mortgages.
The choice between these two non-QM options comes down to how your business handles cash flow and what documentation you already have. Most self-employed borrowers qualify for one option more easily than the other.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate your qualifying income. Lenders apply a percentage to your average monthly deposits — typically 50% for personal accounts or 75% for business accounts.
This option works well if you have consistent deposits but take business deductions that reduce your taxable income. You avoid the problem where your tax returns show less income than you actually earn.
P&L statement loans rely on a CPA-prepared profit and loss statement covering 12-24 months of business operations. Your accountant documents revenue and expenses to establish qualifying income.
This path makes sense when you have organized bookkeeping and a CPA relationship already. It often produces higher qualifying income than bank statements if your business shows strong net profit.
The biggest split is documentation source. Bank statement loans pull straight from your accounts — no accountant needed. P&L loans require professional preparation, which adds cost but may show higher income if your margins are good.
Credit and down payment requirements stay similar across both options. Expect minimum 620-640 credit scores and 10-20% down depending on the lender. Rates vary by borrower profile and market conditions.
Choose bank statement loans if you don't have a CPA or your business runs on thin margins with high expenses. Farmers, contractors, and cash-heavy businesses in Tulelake often qualify better this route.
Pick the P&L option if you have established accounting and strong net profit margins. Professional services, consultants, and businesses with organized books typically get better income treatment with a formal P&L.
No, lenders pick one method per loan file. We analyze both upfront to see which produces better qualifying income for your situation.
Yes, both carry higher rates than conventional loans — typically 1-2% above standard pricing. That premium covers the added risk of alternative documentation.
Expect 3-5 weeks from application to closing. Bank statement loans move slightly faster since they skip the CPA requirement.
Lenders average the full 12 or 24 months, so seasonal businesses can still qualify. Large one-time deposits may get excluded from income calculations.
Yes, they must be a licensed CPA or EA. The lender verifies their credentials and may contact them directly during underwriting.