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in Farmersville, CA
Self-employed borrowers in Farmersville face a choice: prove income through bank deposits or CPA-prepared statements. Both are non-QM loans designed for business owners who can't produce W-2s.
Most lenders want traditional tax returns showing steady income. These two options let you qualify differently. Your choice depends on how you manage business finances and what documentation you already have.
Bank statement loans analyze 12 to 24 months of business or personal bank deposits. Lenders calculate your income from average monthly inflows, typically using 50-75% of deposits as qualifying income.
This works well if you run cash through your accounts regularly. Contractors, retailers, and service providers with consistent deposit patterns qualify easiest. You don't need a CPA or formal books.
P&L statement loans require a CPA-prepared profit and loss statement, usually covering 12-24 months. Your accountant must be licensed and the statement needs detailed revenue and expense breakdowns.
This option suits borrowers who keep formal books and already work with a CPA. Agricultural operators, established businesses, and higher-income earners often prefer this route. The documentation feels more traditional to underwriters.
Bank statement loans let you qualify faster without hiring a CPA. You pull statements directly from your bank. P&L loans require professional accounting work, which costs $500-2,000 depending on complexity.
Income calculation differs too. Bank statements use deposit percentages. P&L statements show actual profit after expenses. If you write off heavy deductions, P&L might show lower qualifying income than your deposits suggest.
Choose bank statements if you deposit income regularly but don't keep formal books. This works for newer businesses, sole proprietors, and anyone without a CPA relationship. Faster to pull together.
Go with P&L if you already file detailed returns and work with an accountant. Agricultural borrowers in Tulare County often use this since they maintain books for farm operations anyway. Also better if deposits don't reflect true income due to transfers or loan proceeds.
Yes, most lenders accept personal statements if business income flows through them. Some require business accounts for higher loan amounts.
Expect $500-2,000 depending on business complexity. Established clients with existing CPA relationships often pay less.
Rates are typically identical since both are non-QM programs. Your credit score and down payment matter more than documentation type.
Most lenders want 12-24 months of history. Some accept as little as 12 months for strong credit profiles.
Bank statement lenders may count those as income unless you document they're not. P&L statements avoid this since CPAs separate revenue from financing.