P&L vs. Bank Statement
Two paths to the same goal: Homeownership without tax returns. We help you choose the one that maximizes your buying power.
Bank Statement Path
We analyze 12-24 months of deposits to determine your monthly income.
- Best for high-revenue businesses
- Standard expense factors apply
- No CPA letter required
P&L Path
We use a Profit & Loss statement prepared by your CPA or tax preparer.
- Best for high-margin service businesses
- Custom expense ratios
- Requires CPA verification
The Strategy Decision
The Common Problem
"My business has $50,000 in monthly deposits, but my actual expenses are only $5,000. Why is the bank counting $25,000 in expenses?"
Short Answer: Standard Bank Statement programs assume a 50% expense ratio. If your actual expenses are lower, a P&L loan allows your CPA to verify your real margins, often doubling your qualifying income.
Decision Framework
- Look at your 12-month deposit average.
- If your actual expenses are < 50%, go P&L.
- If your expenses are > 50%, go Bank Statement.
- Check if your CPA is willing to sign a margin verification letter.
Expert Opinion
Most brokers only offer Bank Statement loans. We offer both. In states like NJ and PA where property taxes are high, that extra qualifying income from a P&L path can be the difference between a 'No' and a 'Yes'.