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in Yreka, CA
Self-employed borrowers in Yreka face a common problem: your tax returns don't show your real income. Both bank statement and P&L loans solve this, but they pull income data from different places.
Bank statement loans scan your deposits over 12-24 months. P&L loans rely on a CPA's income summary. Your business structure and record-keeping determine which path closes faster.
Bank statement loans calculate income from your business account deposits. Lenders review 12 or 24 months of statements and apply a percentage to account for expenses. Most programs use 50% of deposits as qualifying income, though some go higher.
This works well for cash-heavy businesses or contractors who write off everything. You need consistent deposits and minimal NSFs. Personal and business statements both qualify, depending on how you run your books.
P&L loans use a CPA-prepared profit and loss statement to document income. The CPA certifies your business earnings, and lenders underwrite based on net profit. You typically need one or two years of P&L statements plus a current year-to-date report.
This path suits borrowers with clean books and an existing CPA relationship. If you already pay someone to track your income and expenses, you have the paperwork ready. The CPA letter carries weight with underwriters.
Bank statement loans look at gross deposits. P&L loans focus on net profit after expenses. If you have high revenue but tight margins, bank statements often show more qualifying income. If your books are clean and profits are strong, P&L gives you a direct path.
Documentation speed matters in Yreka's small market. Bank statements take minutes to download. A CPA-prepared P&L can take weeks if you're not already working with an accountant. But P&L loans sometimes offer better rate options for borrowers with excellent credit and solid net income.
Choose bank statements if you don't have a CPA, run a cash business, or need to close fast. Choose P&L if you already maintain formal books and your net profit is strong. Most Yreka self-employed borrowers go with bank statements because the documents are already sitting in their inbox.
Some borrowers qualify under both programs. We run scenarios with each method to see which shows higher income. The one that maximizes your buying power wins. Rates vary by borrower profile and market conditions, but both loan types typically price within a quarter point of each other.
Yes, you can mix them if deposits flow through both accounts. Lenders combine statements to calculate total income.
The CPA must be licensed and in good standing. Most lenders require a signed certification letter with the P&L.
Both typically require 620 minimum, though some bank statement programs go to 600. Credit requirements are nearly identical.
Yes, if you can produce the P&L documentation quickly. We often pivot based on which shows better qualifying income.
Yes, both programs work for investment properties in Yreka. Bank statements are more common for short-term rental income.