Question 1

Can I use personal bank statements for a business loan?

Accepted Answer

Yes, if you're a sole proprietor or single-member LLC. Many self-employed borrowers run business income through personal accounts.

Question 2

Does the CPA need to be local to Baldwin Park?

Accepted Answer

No, any licensed CPA works. They must be independent—family members don't qualify as your preparer for mortgage purposes.

Question 3

Which loan type has lower down payment requirements?

Accepted Answer

Both typically require 10-20% down depending on credit score. Documentation type doesn't change down payment—credit and property type do.

Question 4

Can I switch from bank statements to P&L mid-application?

Accepted Answer

Yes, but it restarts underwriting and adds 2-3 weeks. Get the P&L prepared before applying if you think you'll need it.

Question 5

Do both loans accept business bank statements?

Accepted Answer

Bank statement loans require them. P&L loans use the CPA statement instead, though lenders may still review bank activity for reserves.

Bank Statement vs P&L Loans in Baldwin Park: Which Self-Employed Route Wins?