Question 1

Do both loans work for Greenfield borrowers?

Accepted Answer

Yes. Both are non-QM products available in California. A local broker can match you to the right one based on your financials.

Question 2

How many months of bank statements do I need?

Accepted Answer

Most lenders require 12 months minimum. Some programs want 24 months for a stronger income calculation.

Question 3

Who prepares the P&L for a P&L loan?

Accepted Answer

It must be prepared by a licensed CPA. A self-prepared P&L won't satisfy most lenders.

Question 4

Which loan has a lower interest rate?

Accepted Answer

Bank statement loans generally price lower. P&L loans carry added risk for lenders and that shows up in the rate. Rates vary by borrower profile and market conditions.

Question 5

Can I use a mix of personal and business bank statements?

Accepted Answer

Yes, many lenders allow both. Business statements usually require an expense ratio applied to deposits to determine qualifying income.

Question 6

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders want at least a 620 score. Stronger credit means better pricing on both loan types.

Bank Statement vs P&L Loans: Which Fits Self-Employed Buyers in Greenfield?