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in Cloverdale, CA
Most Cloverdale self-employed borrowers get turned down by conventional lenders. Your tax returns show too little income after write-offs.
Two non-QM options fix that problem. Bank statement loans and P&L loans both qualify you on real business income — not what the IRS sees.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits and apply an expense factor.
More months of statements means a more accurate income picture. Stronger numbers also mean better rates and higher loan amounts.
P&L loans use a CPA-prepared profit and loss statement instead of bank statements. Your accountant documents your net business income directly.
This works well if your deposit history is messy or inconsistent. A clean P&L from a licensed CPA carries real weight with lenders.
Bank statement loans rely on your actual cash flow. P&L loans rely on your accountant's income calculation. Same goal, very different paper trail.
P&L loans typically have stricter lender overlays. Fewer wholesale lenders offer them, and the ones that do scrutinize the CPA closely.
If your bank accounts show strong, consistent deposits, go with a bank statement loan. You'll have more lender options and likely better pricing.
If deposits are irregular — seasonal business, multiple accounts, large transfers — a P&L from your CPA may tell a cleaner income story.
Yes. Many lenders accept personal accounts. Business accounts require applying an expense ratio to calculate qualifying income.
It must be prepared by a licensed CPA. Lenders will not accept self-prepared profit and loss statements.
Bank statement loans generally price better. More lenders offer them, which creates more competition. Rates vary by borrower profile and market conditions.
Most lenders require 12 months minimum. Going back 24 months usually strengthens your qualifying income calculation.
Some lenders allow both as supporting documents. Ask us which lenders in our network accept combined income documentation.
Yes. Non-QM loans are property-location agnostic. What matters is your income docs, credit profile, and loan-to-value ratio.