Question 1

Can I use personal bank statements instead of business?

Accepted Answer

Yes. Many lenders accept personal accounts. Mixing personal and business deposits can complicate underwriting, so keep accounts separate.

Question 2

Does my CPA need special credentials for a P&L loan?

Accepted Answer

Most lenders require a licensed CPA. An enrolled agent or bookkeeper usually won't qualify. Confirm your CPA's license before you start.

Question 3

Which loan has a lower minimum credit score?

Accepted Answer

Both programs typically start around 620 to 640. Some lenders go lower with stronger compensating factors like a large down payment.

Question 4

Are rates higher on P&L loans than bank statement loans?

Accepted Answer

Often, yes. P&L loans are seen as slightly riskier by many lenders. Rates vary by borrower profile and market conditions.

Question 5

Can I use either loan to buy in Union City's price range?

Accepted Answer

Both are non-QM loans with no conforming loan limits. Loan amounts depend on your documented income and lender guidelines.

Question 6

How long does it take to close a bank statement loan?

Accepted Answer

Typically 21 to 30 days when docs are ready. Gathering two years of statements upfront cuts the most time.

Bank Statement vs P&L Loans: Which Fits You?