Question 1

Do both loans require a minimum credit score?

Accepted Answer

Yes. Most non-QM lenders require at least 620 to 660. Higher scores get better pricing on both products.

Question 2

Can I use personal bank statements for a business loan?

Accepted Answer

Yes, many lenders accept personal statements. Business statements usually produce a higher qualifying income.

Question 3

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

Accepted Answer

Your CPA must be licensed and the statement must meet the lender's format requirements. A generic spreadsheet won't cut it.

Question 4

Which loan type typically has a lower rate?

Accepted Answer

Rates vary by borrower profile and market conditions. Neither product has a universal rate advantage over the other.

Question 5

Can I own any type of business to qualify?

Accepted Answer

Most lenders require at least two years of self-employment history. Sole proprietors, LLCs, and S-corps all qualify.

Question 6

What down payment do these loans require?

Accepted Answer

Most non-QM lenders want 10 to 20 percent down. The exact amount depends on your credit score and loan size.

Bank Statement vs P&L Loans in Taft, CA