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in Davis, CA
Most Davis self-employed borrowers can't use tax returns to qualify. These two non-QM loans solve that problem differently.
Bank Statement loans use your actual deposits. P&L loans use a CPA-prepared summary. Knowing the difference saves you time and money.
Bank Statement loans qualify you on 12 to 24 months of deposit history. Lenders average your deposits and apply an expense factor to estimate income.
This works well for Davis business owners with strong cash flow but heavy write-offs. Your tax return income doesn't matter here.
P&L Statement loans use a CPA-prepared profit and loss report — often just 12 months — to verify what your business actually earned.
Less paperwork than pulling two years of bank statements. But your CPA must prepare and sign the document. A self-prepared P&L won't fly.
Bank Statement loans require more documents but give lenders a direct view of cash flow. P&L loans rely on your accountant's summary — which lenders scrutinize closely.
Rates vary by borrower profile and market conditions. Bank Statement loans often price slightly higher due to added lender risk from unverified income summaries.
Run a business with high revenue and big deductions? Bank Statement loans usually show more usable income than your tax return ever would.
Work with an active CPA who keeps clean books? A P&L loan can get you to closing faster with fewer pages to gather. Ask us to run both scenarios.
Yes. Many lenders accept personal accounts, though business accounts are preferred. Mixing personal and business deposits can complicate the income calculation.
Yes. Lenders require a licensed CPA or tax professional to prepare and sign the statement. A self-made P&L will not be accepted.
Both are non-QM products, so rates run higher than conventional. Rates vary by borrower profile and market conditions — we shop 200+ lenders to find the best fit.
Yes. Both programs can work for investment properties. Expect stricter reserve requirements and a larger down payment on non-owner-occupied purchases.
Non-QM loans can take a few days longer due to manual underwriting. Having your statements or CPA P&L ready up front cuts that time significantly.