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in Rio Vista, CA
Both bank statement and P&L loans help self-employed borrowers qualify without tax returns. The difference comes down to how you prove your income and what documents your CPA already prepares.
Rio Vista's mix of small business owners and remote entrepreneurs makes both options relevant. Your choice depends on whether you want to skip the CPA requirement or present a cleaner income picture.
Bank statement loans use 12 to 24 months of business or personal bank deposits to calculate income. Lenders average your deposits and apply a percentage based on your business type.
You avoid the CPA cost but expect stricter scrutiny of irregular deposits. Lenders exclude transfers, returns, and one-time deposits that inflate your monthly average.
P&L loans require a CPA-prepared profit and loss statement covering 12 to 24 months. Your accountant signs off on net income, which lenders use to qualify you.
This path works if you already file detailed financials or need to show higher income than raw deposits reveal. The CPA requirement adds cost but often increases buying power.
Bank statement loans pull directly from your deposits with no third-party verification. P&L loans rely on your accountant's calculation of net profit, which typically shows a cleaner income story.
Rates vary by borrower profile and market conditions, but P&L loans sometimes edge lower because of the CPA validation. Bank statement loans close faster since you skip the accountant step entirely.
Choose bank statement loans if you want to avoid CPA fees or your deposits consistently reflect your income. This works best for service businesses with simple cash flow.
Go with P&L loans if you write off heavy expenses or your deposits look erratic. The CPA statement smooths out your income picture and usually qualifies you for more house in Rio Vista.
Yes, lenders accept personal statements if business income flows through your personal account. They'll exclude personal deposits like transfers and gifts.
The CPA must hold an active license in any U.S. state. California licensure isn't required but the license must be current and verifiable.
Rates vary by borrower profile and market conditions. P&L loans sometimes price slightly better due to CPA verification, but your credit and down payment matter more.
Yes, but expect a delay while you gather new documentation. Most borrowers know which path fits better after one conversation with their broker.
Both allow cash-out up to 80% loan-to-value. The income documentation requirement stays the same whether you're purchasing or refinancing in Rio Vista.