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in Weed, CA
Self-employed borrowers in Weed face a common challenge: proving income without W-2s. Most rural Siskiyou County entrepreneurs—contractors, cannabis cultivators, tourism operators—don't fit traditional mortgage boxes.
Bank statement loans and P&L statement loans both solve this problem. They verify income differently, though, and one will likely cost you less based on how you track finances.
Bank statement loans use 12 or 24 months of personal or business bank deposits to calculate income. Lenders average your monthly deposits and apply a percentage—usually 50% for expenses—to determine qualifying income.
This works well if you keep money flowing through accounts but write off most income at tax time. You don't need a CPA or formal bookkeeping. Just consistent deposits that show cash flow.
P&L statement loans require a CPA-prepared profit and loss statement covering 12 to 24 months. The CPA must be licensed and uninvolved in your business. Some lenders also want a balance sheet.
This route benefits borrowers with clean books and higher net income after expenses. Your CPA attests to earnings, which often qualifies you for better rates than bank statement programs.
The main split is documentation burden versus qualifying income. Bank statement loans need no CPA but calculate income conservatively—expect 50% to 75% of deposits to count. P&L loans require professional prep but use actual net income.
Rates differ too. P&L loans typically price 0.25% to 0.75% lower because CPAs add credibility. If your net profit exceeds 50% of gross deposits, P&L wins. If you deposit cash irregularly or lack formal accounting, bank statements fit better.
Choose bank statement loans if you operate informally, write off aggressively, or lack a CPA relationship. They work for Weed's seasonal businesses—timber contractors, short-term rental operators—where deposit volume is high but reported income is low.
Go P&L if you have clean books and a CPA already filing your taxes. The upfront cost of professional statements pays off through lower rates on your mortgage. Run both scenarios before deciding—what qualifies you for more house matters as much as ease of approval.
No. Lenders require one income verification method per loan file. You pick the approach that qualifies you for the most house at the best rate.
Yes. Both programs finance single-family homes, cabins, and properties on acreage. Lenders just require standard appraisals regardless of location in Siskiyou County.
Both typically require 620 minimum. Higher scores—680 and above—unlock better pricing on either program. Rates vary by borrower profile and market conditions.
Expect 10% to 20% down for primary homes. Investment properties need 20% to 25%. Both loans treat down payments the same way.
Switching restarts underwriting. Choose upfront by reviewing 24 months of deposits versus your CPA-prepared net income. One will clearly qualify you better.