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in Lindsay, CA
Lindsay's self-employed borrowers have two main paths to a mortgage without traditional W-2 income verification. Bank statement loans use your personal or business account deposits, while P&L statement loans rely on CPA-prepared financials.
Both are non-QM programs that ignore tax returns. The right choice depends on how you run your books and what documentation you already have prepared.
Bank statement loans calculate your income from 12 or 24 months of deposits. Lenders apply an expense ratio based on your business type—typically 25% to 50%—then use the remainder as qualifying income.
You can use personal bank statements if you deposit business income there. Business accounts work too. This program fits self-employed borrowers who write off heavy expenses but show strong cash flow in their accounts.
Profit and loss statement loans use a CPA-prepared P&L covering 12 to 24 months. Your CPA signs off on the document, and lenders use the net profit as qualifying income.
Some lenders want a balance sheet too. This program works best if you already maintain detailed books for your business and have a CPA relationship in place.
Bank statements show raw cash flow, which can be higher than your net profit if you write off depreciation, mileage, or home office expenses. P&L loans use profit after expenses, which might be lower but looks cleaner to underwriters.
Bank statement loans cost less upfront—no CPA fees. P&L loans demand professional preparation but can qualify you faster if your books are already audit-ready. Credit and down payment requirements run similar for both, typically 620+ score and 10-20% down.
Choose bank statements if you deposit business income into personal accounts or take heavy tax deductions. This route works for contractors, real estate agents, and small business owners who show strong monthly deposits but minimal net profit on paper.
Choose P&L loans if you run formal books through a CPA and your net profit already looks strong. This fits established businesses with clean financials, especially if you need the approval to happen fast and your accountant can turn around the paperwork quickly.
Yes, lenders will review either or both. Many self-employed borrowers in Lindsay mix business deposits into personal accounts, which works fine for qualification.
Your CPA must be licensed and in good standing. Most lenders accept any licensed CPA, but some want at least two years of history preparing your business financials.
Bank statement loans typically close faster if you already have statements. P&L loans depend on how quickly your CPA can prepare and sign the documents.
Yes, both work well for 1099 income. Bank statements often win here since contractor deposits show up clearly without needing formal P&L preparation.
Lenders average the deposits across 12 or 24 months. Seasonal businesses still qualify, though steadier income makes underwriting smoother.