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in Cotati, CA
Self-employed buyers in Cotati can't always show W-2 income. Both these non-QM loans solve that problem — just differently.
One uses your bank deposits as proof. The other uses a CPA-signed P&L. The right choice depends on how your business runs.
Bank statement loans use 12 to 24 months of deposits to calculate your income. Lenders average your deposits, then apply an expense factor.
This works well if your business account shows strong, consistent cash flow. Sole proprietors and LLCs both qualify.
P&L loans rely on a profit and loss statement prepared and signed by a licensed CPA. That document replaces bank statements entirely.
If your deposits look irregular but your CPA can document clean net income, this path often works better.
Bank statement loans depend on deposit volume. Low deposits mean low qualifying income, even if your business is profitable.
P&L loans depend on what your CPA reports as net profit. A good CPA presentation can show stronger income than deposits suggest.
Rates on both products are higher than conventional loans. Rates vary by borrower profile and market conditions.
High-revenue businesses with steady deposits usually win with bank statement loans. Your deposit history does the heavy lifting.
If you write off a lot on taxes and your deposits look thin, the P&L route lets your CPA frame income more favorably.
Newer businesses under two years old often can't do bank statement loans. A P&L from a CPA may be their only non-QM option.
No. Bank statement loans don't require a CPA. You just provide 12 to 24 months of statements.
Some lenders allow it, but most programs use one method only. Ask your broker which approach gives you the higher income.
Neither is reliably cheaper — it depends on the lender and your profile. Rates vary by borrower profile and market conditions.
Most non-QM lenders want at least a 620. Some go lower with a larger down payment.
Bank statement loans usually require two years in business. P&L loans sometimes accept 12 months with a strong CPA letter.
Yes. Non-QM loans are available statewide in California, including Cotati and broader Sonoma County.