Question 1

Do both loans require good credit?

Accepted Answer

Most lenders want at least a 620 score for either program. Some non-QM lenders go lower, but rates climb fast below 680.

Question 2

Can I use personal bank statements?

Accepted Answer

Yes, but business statements usually produce higher qualifying income. Personal accounts need a clear separation from business deposits.

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 any legitimate non-QM lender.

Question 4

Which loan closes faster?

Accepted Answer

Bank Statement Loans often move quicker — no CPA coordination needed. A P&L loan timeline depends on how fast your accountant can turn around docs.

Question 5

Are rates higher than a conventional loan?

Accepted Answer

Yes. Both are non-QM products. Expect rates above conventional pricing. Rates vary by borrower profile and market conditions.

Question 6

Can I use either loan for an investment property in El Centro?

Accepted Answer

Yes, both programs can finance investment properties. Lenders typically require a larger down payment — often 20 to 25 percent.

Bank Statement vs P&L Loans in El Centro