Question 1

Do both loans require a minimum credit score?

Accepted Answer

Yes. Both are non-QM but lenders still set credit minimums. Most want at least 620-640. Your score affects your rate. Rates vary by borrower profile and market conditions.

Question 2

Can I use personal bank statements instead of business?

Accepted Answer

Yes, on a Bank Statement Loan. Personal accounts avoid the expense factor adjustment. Business accounts get that haircut applied to deposits.

Question 3

Does my CPA need to be licensed for a P&L Loan?

Accepted Answer

Most lenders require a CPA or licensed tax professional to prepare the statement. A self-prepared P&L won't fly with wholesale lenders.

Question 4

Which loan type has lower rates in Rio Dell?

Accepted Answer

Neither has a blanket rate advantage. It depends on your credit, down payment, and lender. Rates vary by borrower profile and market conditions.

Question 5

How much down payment do these loans require?

Accepted Answer

Typically 10% to 20% down for non-QM loans. Stronger credit and reserves can sometimes lower that. Each lender sets its own floor.

Question 6

Can I switch loan types mid-application?

Accepted Answer

Yes, and we do it often. If your bank statement income looks weak, we pivot to the P&L — or vice versa. That's why working with a broker matters.

Bank Statement vs P&L Loans for Rio Dell's Self-Employed