Question 1

Can I apply for both and choose the better outcome?

Accepted Answer

Yes. A broker can run income calculations under both methods. You pick whichever qualifies you for more.

Question 2

Does my CPA need to be licensed in California?

Accepted Answer

Most lenders require a CPA licensed in the state where the business operates. For Ukiah businesses, that means a California-licensed CPA.

Question 3

Which loan has better rates — bank statement or P&L?

Accepted Answer

Bank statement loans typically have more lender competition, which helps rates. P&L loans have fewer lenders, so rates often run higher. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders want at least a 620 for these programs. Stronger scores get better pricing on both products.

Question 5

Do these loans work for sole proprietors in Ukiah?

Accepted Answer

Yes. Sole proprietors, LLC owners, and S-corp owners all qualify. The lender just needs to verify self-employment for two years.

Question 6

How long does a P&L statement need to cover?

Accepted Answer

Most lenders require 12 to 24 months. A one-month P&L won't cut it — lenders want to see a real income trend.

Bank Statement vs P&L Loans for Ukiah Self-Employed Buyers