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in Porterville, CA
Self-employed borrowers in Porterville face a choice: prove income with bank statements or a CPA-prepared P&L. Both are non-QM loans designed for business owners who write off too much to qualify traditionally.
Your best option depends on how you track income and what documentation you already have. Most borrowers lean toward bank statements because they're faster and don't require a CPA letter.
Bank statement loans use 12 to 24 months of personal or business bank deposits to calculate income. Lenders add up your deposits and apply a standard expense ratio to estimate qualifying income.
You don't need a CPA or formal accounting. Just provide bank statements showing consistent deposits. This works well for contractors, consultants, and small business owners in Porterville who keep clean books but don't file detailed P&Ls.
P&L statement loans require a CPA-prepared profit and loss statement covering at least 12 months. The CPA must be licensed and include a signed letter confirming your income figures.
This option works if you already have a CPA managing your books. It can show higher qualifying income because your accountant presents net profit directly instead of letting a lender estimate it from deposits.
The main split is documentation speed versus income accuracy. Bank statements are faster because you pull them online and submit. P&L loans take longer because your CPA must prepare statements and sign off.
Bank statement loans let lenders estimate expenses at 30-50% of deposits. P&L loans show actual net profit, which can be higher if you run lean or lower if you carry heavy overhead. Rates vary by borrower profile and market conditions, but both typically sit in the same range.
Choose bank statements if you don't work with a CPA or need fast approval. Most Porterville borrowers go this route because it's simpler and costs less upfront.
Go with a P&L loan if you already pay a CPA to manage books and your net profit is strong. This makes sense for established businesses with multiple revenue streams or higher expenses that bank statement math wouldn't capture accurately.
Yes, but it restarts your documentation timeline. You'll need your CPA to prepare the P&L and sign a letter, which adds 1-2 weeks minimum.
Generally yes, both start at 10-15% down. Your credit score and reserves matter more than which income documentation you use.
Bank statement loans usually close 3-5 days faster because you skip the CPA step. Both take 30-45 days total on average.
Not typically. Lenders choose one income calculation method. Pick whichever shows your strongest qualifying income.
Bank statement loans average your deposits over 12-24 months. Seasonal income is fine as long as the average stays consistent.