Question 1

Can I use personal bank statements instead of business accounts?

Accepted Answer

Yes, if business income flows through your personal account. Lenders accept either business or personal statements, depending on where you deposit revenue.

Question 2

How recent does the CPA-prepared P&L need to be?

Accepted Answer

Most lenders require a P&L dated within 90 days of application. The statement must cover the trailing 12 months of business activity.

Question 3

Do both loan types allow cash-out refinances?

Accepted Answer

Yes, both programs support purchase and cash-out refinance transactions. Cash-out limits vary by lender but typically max at 80% loan-to-value.

Question 4

What if my bank statements show irregular deposits?

Accepted Answer

Large one-time deposits need explanation letters. Consistent monthly patterns work best. If your income is erratic, P&L loans may provide cleaner approval.

Question 5

Can a bookkeeper prepare the P&L instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA to prepare and sign the profit and loss statement. The CPA must be third-party—not related to you.

Question 6

Which program has better interest rates?

Accepted Answer

Rates vary by borrower profile and market conditions. Both are non-QM loans, so expect rates 1-2% above conventional mortgages regardless of documentation type.

Bank Statement vs P&L Loans in Cerritos: Which Self-Employed Route Fits Your Business?