Question 1

Can I use both bank statements and a P&L together?

Accepted Answer

No, lenders use one income method per loan. You pick the approach that shows higher qualifying income for your situation.

Question 2

Which one gets better rates?

Accepted Answer

Rates are nearly identical since both are Non-QM products. Your credit score and down payment matter more than documentation type.

Question 3

Do I need a business license for either loan?

Accepted Answer

Not always. Bank statement loans rarely require it. P&L loans may ask for business verification depending on the lender.

Question 4

How far back do my bank statements need to go?

Accepted Answer

Most programs use 12 months. Some allow 24-month averaging if it helps your income calculation.

Question 5

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

Accepted Answer

No. Lenders require a licensed CPA signature. Bookkeepers and accountants without CPA credentials don't qualify.

Bank Statement vs P&L Loans in Los Angeles: Which Self-Employed Income Doc Works Better?