Question 1

Can I use personal bank statements for a Bank Statement loan?

Accepted Answer

Yes. Most lenders accept personal or business statements. Personal accounts get a lower expense ratio applied, which can raise your qualifying income.

Question 2

Who has to prepare the P&L statement?

Accepted Answer

It must be prepared by a licensed CPA. A self-prepared P&L won't qualify — lenders need a third-party professional to sign off.

Question 3

Which loan type has better rates?

Accepted Answer

Bank Statement loans typically price better. P&L loans carry more lender risk, so rates are often higher. Rates vary by borrower profile and market conditions.

Question 4

Do both loans require a minimum credit score?

Accepted Answer

Yes, both are non-QM but still have credit requirements. Most lenders want at least a 620, though some go lower with larger down payments.

Question 5

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders require two years of self-employment history for both loan types. Some will consider 12 months with strong documentation.

Question 6

Can I use either loan to buy in Gonzales or Monterey County?

Accepted Answer

Yes. Both Bank Statement and P&L loans are available statewide in California. We place non-QM loans throughout Monterey County regularly.

Bank Statement vs P&L Loans in Gonzales, CA