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in Sonoma, CA
Both bank statement loans and P&L loans help self-employed borrowers in Sonoma qualify without W-2s. The main difference is which documents you use to prove income—and whether you want a CPA involved.
Wine country entrepreneurs, tourism business owners, and consultants often pick one of these routes. Your choice depends on how your business finances are organized and whether your tax returns show full income.
Bank statement loans use 12 or 24 months of personal or business bank statements to calculate income. Lenders average your deposits and back out a percentage for expenses—usually 25% to 50% depending on your business type.
You don't need tax returns or a CPA letter. This works well if you write off most income on taxes but have strong cash flow. Rates run higher than conventional loans because these are non-QM products.
Most lenders want 10% to 20% down and credit scores above 620. Approval hinges on consistent deposits, not what you reported to the IRS.
P&L statement loans rely on a CPA-prepared profit and loss statement covering 12 to 24 months. Your accountant certifies your business income, and lenders use that number for qualification.
You still don't submit full tax returns, but you need a licensed CPA to prepare and sign the P&L. This route makes sense if your accountant already tracks clean financials and your profit margins look stronger than your tax return shows.
Down payment and credit requirements mirror bank statement loans—expect 10% to 20% down and 620+ scores. Rates are competitive with other non-QM options but higher than conventional mortgages.
Bank statement loans let you skip the CPA entirely—you just submit statements from your checking account. P&L loans require a licensed accountant to prepare formal financials, which adds cost but often shows higher qualifying income.
Income calculation varies sharply. Bank statement lenders subtract an expense ratio from deposits, which can lower your qualifying income. P&L statements reflect actual profit after expenses, which may be higher if you run a lean operation.
Approval speed favors bank statements when you have clean deposits. P&L loans take longer if your CPA needs time to compile statements. Both require 12 to 24 months of history—you can't use either option if you just started your business.
Pick bank statement loans if you manage books yourself, show steady deposits, and want faster approval. This works for most Sonoma self-employed buyers who keep simple financials and don't want CPA involvement.
Choose P&L loans if you already work with a CPA and your profit margins look strong on paper. This route makes sense for established businesses with formal accounting—think vineyards, hospitality operators, or consulting firms with clean books.
Either way, expect higher rates than conventional loans. Rates vary by borrower profile and market conditions. Both programs give self-employed borrowers a path to financing without tax return scrutiny, which matters if you maximize deductions.
Most lenders accept personal statements if you're a sole proprietor and business income flows through personal accounts. Business account statements work too if transactions are clear.
Expect $300 to $1,000 depending on your business complexity and whether you already work with a CPA. Simple operations cost less than multi-entity structures.
P&L loans often qualify you for more because they reflect actual profit. Bank statement loans subtract a flat expense ratio, which can reduce qualifying income by 25% to 50%.
Yes, both typically need 12 to 24 months of business history. You can't qualify if you just started—lenders want proof of consistent income over time.
Rates run similar since both are non-QM loans. Actual rates vary by borrower profile and market conditions, but expect 1% to 3% above conventional rates.