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in Dixon, CA
Both bank statement and P&L loans serve self-employed borrowers in Dixon who write off too much income to qualify through traditional channels. The difference is what lenders review to calculate your income.
Bank statement loans look at deposits flowing through your accounts. P&L loans require a CPA-prepared financial statement. Your business structure and record-keeping habits determine which path closes faster.
Bank statement loans use 12 to 24 months of business or personal bank statements to verify income. Lenders add up deposits and subtract non-income items like transfers and reimbursements. They apply an expense ratio based on your business type to arrive at qualifying income.
This works well for Dixon contractors, agricultural service providers, and small business owners who maintain consistent deposit patterns but aggressive tax write-offs. You avoid the CPA requirement. Lenders typically expect 10-20% down and credit scores above 620.
P&L statement loans require a CPA-prepared profit and loss statement covering 12-24 months of business operations. The CPA signs off on your income calculation. This creates a cleaner approval path when your books are professionally maintained and match bank activity.
Dixon business owners with established accounting systems prefer this route. The CPA involvement adds credibility with underwriters. Down payment requirements mirror bank statement loans at 10-20%. Rates often land slightly better because the income documentation carries more weight with lenders.
The documentation split drives everything else. Bank statement loans let you skip the CPA and work directly from deposit records. P&L loans require professional financial preparation but often result in higher qualifying income and better terms.
Processing speed varies by how organized your records are. Clean bank statements with consistent deposits close in 3-4 weeks. P&L loans need the CPA turnaround time added to that timeline. Rates vary by borrower profile and market conditions but typically fall within 0.25-0.75% of each other.
Choose bank statement loans if you operate without a CPA or bookkeeper. This fits newer businesses, sole proprietors, and contractors who track deposits but not formal accounting. You get faster processing and avoid professional prep costs.
Go with P&L loans if you already maintain CPA-prepared books. Established Dixon businesses with clean financials qualify for more income this way. The CPA signature carries weight with underwriters and often unlocks better pricing across our 200+ lender network.
Yes for bank statement loans if business income runs through personal accounts. Most sole proprietors and independent contractors in Dixon qualify this way.
Expect $500-1500 depending on business complexity. Many Dixon borrowers already have these statements prepared for other purposes.
P&L loans typically qualify 10-15% more income because CPAs add back legitimate business expenses. Bank statements apply standard expense ratios by industry.
Yes. Both bank statement and P&L programs cover primary homes, second homes, and investment properties throughout Solano County.
Bank statement loans average deposits over 12-24 months to smooth seasonal patterns. Agricultural and construction businesses in Dixon handle this regularly.