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in Exeter, CA
Self-employed borrowers in Exeter face a choice: show income through bank statements or a CPA-prepared P&L. Both are non-QM loans that skip tax returns, but they verify income differently.
Your business structure and how you track finances determines which path gets you approved faster. Most borrowers find one option clearly better than the other once they see the requirements.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders calculate income by applying a percentage to your average monthly deposits—typically 50% for businesses, 100% for personal accounts.
You don't need a CPA or formal books. As long as deposits are consistent and cover the mortgage payment with room to spare, you can qualify. This works well for contractors, real estate agents, and small business owners in Tulare County who write off most income.
P&L statement loans require a certified public accountant to prepare a profit and loss statement covering at least 12 months. The CPA verifies your business income using QuickBooks, financial records, or accounting software.
Lenders underwrite based on your net profit shown on the P&L. You need clean books and a CPA relationship already established. This path suits business owners in Exeter who maintain formal accounting systems and can document consistent profitability.
Bank statement loans cost $0 in CPA fees and work with messy books. P&L loans require paying a CPA $500-$2,000 to prepare statements, but they often show higher qualifying income if your books are clean.
Rate differences are minimal—both typically run 1-2% above conventional rates. The real difference is approval speed: bank statements take 3-5 business days to review, while P&L loans add time for CPA preparation and verification.
Choose bank statements if you don't have a CPA, write off most income on taxes, or need to close quickly. Most Exeter self-employed borrowers go this route because it's simpler and doesn't require clean books.
Pick P&L if you already maintain formal accounting, have a CPA relationship, and your net profit is strong. This works best for established businesses with solid bookkeeping who show more income on paper than in bank deposits.
Yes. Lenders accept personal bank statements if business income deposits into your personal account. They apply 100% of deposits as income instead of the 50% used for business accounts.
No. P&L loans skip tax returns entirely. Lenders verify income through the CPA-prepared profit and loss statement instead.
It depends on your books. P&L often shows higher income if you have strong net profit. Bank statements work better if you write off most income on taxes.
Yes. We can pivot between documentation types if one doesn't qualify you. This adds 1-2 weeks to your timeline.
Typically yes. Most lenders require 10-20% down for both programs. Your credit score and property type matter more than which income documentation you choose.