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in Fillmore, CA
Self-employed borrowers in Fillmore have two main options for non-QM financing. Both Bank Statement Loans and Profit & Loss Statement Loans help business owners qualify without traditional W-2 income.
These alternative documentation loans serve the same goal differently. Understanding how each verifies your income helps you choose the right path for your Ventura County home purchase.
Rates vary by borrower profile and market conditions. Both loan types offer flexible qualifying for entrepreneurs, contractors, and small business owners in Fillmore.
Bank Statement Loans use 12 to 24 months of personal or business bank statements to verify income. Lenders review deposits to calculate your qualifying income without tax returns.
This option works well if you take significant tax deductions that lower your reported income. Your actual cash flow matters more than what appears on tax documents.
Most lenders require either 12 or 24 months of consecutive statements. The longer period often results in better rates and terms for Fillmore borrowers.
Profit & Loss Statement Loans rely on a CPA-prepared P&L statement to document your business income. This provides a professional financial snapshot of your business performance.
You typically need a year-to-date P&L and sometimes prior year statements. The CPA preparation adds credibility and structure to your income documentation.
This approach suits borrowers with established accounting relationships. Having a CPA already managing your books makes this path straightforward and efficient.
The main difference is documentation type and preparation. Bank Statement Loans need raw bank records you already have, while P&L Loans require professional accounting statements.
Cost and timeline also vary between these options. Bank statements are immediately available, but P&L preparation takes time and involves CPA fees.
Qualification calculations differ as well. Bank statement lenders analyze deposits directly, while P&L lenders review your business profit minus expenses.
Neither option is inherently better for Fillmore borrowers. Your existing documentation and business structure determine which makes more sense.
Choose Bank Statement Loans if you want faster processing and already maintain clear bank records. This works best when you don't currently work with a CPA.
Consider P&L Statement Loans if you have an established CPA relationship and detailed business accounting. This option provides more structured income documentation.
Your business type matters too. Contractors and freelancers often prefer bank statements, while established businesses with formal bookkeeping lean toward P&L documentation.
Speak with a Fillmore mortgage broker to review your specific situation. They can analyze your documents and recommend the best path forward.
Yes, most lenders accept either personal or business bank statements. Some borrowers use a combination of both to show the full income picture.
These non-QM loans typically have slightly higher rates than conventional loans. Rates vary by borrower profile and market conditions for both options.
Bank Statement Loans often close faster since documents are readily available. P&L loans need time for CPA preparation, which can add several weeks.
Yes, you can switch if one approach shows better income qualification. Your broker can help determine which documentation presents your finances best.
Both loan types typically require similar credit scores. Most lenders want at least 600-620, though specific requirements vary by lender and program.