Question 1

Can I use personal bank statements or does it have to be business accounts?

Accepted Answer

Either works. Most Santa Monica self-employed borrowers use business accounts, but personal statements work if that's where income deposits land.

Question 2

How much does a CPA charge to prepare a P&L for mortgage purposes?

Accepted Answer

Expect $500 to $2,000 depending on complexity. If you already have a CPA doing your books, they can usually turn it around for the lower end.

Question 3

Which loan type gets better rates?

Accepted Answer

Rates are comparable since both are non-QM products. Pricing depends more on credit score, down payment, and property type than documentation method.

Question 4

Do I need two years in business for both options?

Accepted Answer

Most lenders want at least two years self-employed. Some accept 12 months with strong financials and higher down payments.

Question 5

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

Accepted Answer

Yes, but it restarts underwriting. Pick your doc type before applying to avoid delays and duplicate effort.

Bank Statement vs P&L Loans in Santa Monica: Which Income Doc Works for Self-Employed Borrowers?