Question 1

Can I use both bank statements and a P&L on the same application?

Accepted Answer

No. Lenders require one documentation method per file. We'll test both upfront and submit whichever gives you the strongest approval.

Question 2

Do I need 24 months of statements or will 12 work?

Accepted Answer

Most lenders accept 12 months. Using 24 months can smooth out seasonal income swings and sometimes improve your qualifying number.

Question 3

How quickly can I close with each option?

Accepted Answer

Bank statement loans close in 21-30 days once you provide statements. P&L loans take 30-45 days if your CPA needs time to prepare the document.

Question 4

What if my deposits look inconsistent month to month?

Accepted Answer

Lenders average all months, so seasonal dips get balanced by strong months. Unexplained large one-time deposits may be excluded from the calculation.

Question 5

Does my CPA need a specific license for P&L loans?

Accepted Answer

Yes. The CPA must hold an active state license. Lenders verify credentials directly. Bookkeepers and unlicensed accountants don't qualify.

Question 6

Can I refinance with these programs or only purchase?

Accepted Answer

Both work for purchase and refinance. Rate-term refis and cash-out refis are both allowed, subject to LTV limits and seasoning requirements.

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