Question 1

Do both loans require a CPA?

Accepted Answer

P&L Loans require a CPA-prepared statement. Bank Statement Loans do not — you just submit your bank records directly.

Question 2

Which loan has stricter income requirements?

Accepted Answer

It depends on your business. Bank statements can show higher gross income. P&L reflects what's left after expenses.

Question 3

Can I use personal bank statements?

Accepted Answer

Yes, most Bank Statement Loan programs accept personal accounts. Business accounts typically get a higher expense factor applied.

Question 4

Are P&L Loans harder to get approved?

Accepted Answer

Not necessarily harder — just different. Your CPA's numbers must support the income you're claiming to the lender.

Question 5

Do these loans work for Livingston borrowers with seasonal income?

Accepted Answer

Bank Statement Loans handle seasonal income better. Lenders average deposits over 12 to 24 months, smoothing out slow seasons.

Bank Statement vs P&L Loans in Livingston, CA