Question 1

Do both loans require good credit?

Accepted Answer

Yes. Non-QM lenders still check credit. Most want at least a 620 score, though requirements vary by lender and program.

Question 2

Can I use personal bank statements?

Accepted Answer

Yes, most bank statement lenders accept personal accounts. Business accounts work too, but the expense ratio applied may differ.

Question 3

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. A self-prepared P&L won't be accepted by most non-QM lenders.

Question 4

Are rates higher on these loans than conventional?

Accepted Answer

Generally yes. Non-QM products carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

Question 5

Can I use either loan to buy in El Dorado County?

Accepted Answer

Yes. Both programs work for purchase and refinance in Placerville and throughout El Dorado County.

Question 6

Which loan closes faster?

Accepted Answer

P&L loans often close faster due to less documentation. Bank statement loans require more review time on deposit history.

Bank Statement vs P&L Loans in Placerville