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in Visalia, CA
Self-employed borrowers in Visalia face a choice: prove income with bank statements or a CPA-prepared P&L. Both are non-QM options designed for business owners, contractors, and 1099 earners who can't show traditional W-2 income.
The right path depends on how you run your books and what paperwork you already have. We see ag business owners, contractors, and medical professionals in Tulare County succeed with both approaches.
Bank statement loans calculate income from 12 to 24 months of business or personal account deposits. Lenders average your monthly deposits and apply an expense ratio—typically 25% to 50%—to estimate qualifying income.
This works well if you run lean on the books but show strong cash flow. Many Visalia business owners who write off most taxable income still qualify because lenders see actual money moving through accounts.
P&L statement loans require a certified public accountant to prepare a profit and loss statement covering 1-2 years. The lender uses your net business income from that document to qualify you.
This option suits borrowers who already work with a CPA and maintain clean books. If you file detailed returns and track expenses carefully, a P&L loan often delivers better rates than bank statement programs.
Bank statement loans look at gross deposits and back out expenses with a flat ratio. P&L loans use your actual reported net income after all deductions. If you write off aggressively, bank statements usually show higher qualifying income.
P&L loans typically come with lower rates because lenders view CPA-verified income as stronger documentation. Bank statement programs carry slightly higher pricing due to the estimation method, but they move faster since you skip CPA involvement.
Choose bank statements if you don't have a CPA relationship, run most income through accounts, or write off heavily on tax returns. This works for contractors, ag operators, and cash-heavy businesses common in Tulare County.
Go with P&L if you already file detailed returns, work with an accountant, and report solid net income. Medical professionals, established retailers, and service businesses with clean books get better terms this route.
Yes, most lenders accept personal accounts if your business income deposits there. Some borrowers combine personal and business statements for stronger income documentation.
Expect $500 to $2,000 depending on complexity. If you already file with a CPA, they can often generate the needed P&L from existing records at lower cost.
Both typically require 620-640 minimum credit scores. P&L loans sometimes accept slightly lower scores due to stronger income verification from a licensed accountant.
Yes, most non-QM programs need 10-20% down. Bank statement loans often require 15% minimum, while P&L loans may go as low as 10% with strong profiles.
You can, but it restarts income verification and adds 2-4 weeks for CPA prep. Better to choose your documentation path before starting the application process.