Question 1

Do both loans require good credit?

Accepted Answer

Yes. Most non-QM lenders want at least a 620 credit score. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 2

Can I use a P&L my accountant made on a spreadsheet?

Accepted Answer

No. Lenders require a CPA or licensed tax preparer to sign the P&L. A self-prepared document will not be accepted.

Question 3

Which loan has lower rates in Fountain Valley?

Accepted Answer

Rates vary by borrower profile and market conditions. Bank statement loans typically have a wider rate range due to more lender competition.

Question 4

How much can I put down on either loan?

Accepted Answer

Most non-QM lenders want 10% to 20% down. Lower down payments usually require stronger credit and reserves.

Question 5

Can I use both business and personal bank statements?

Accepted Answer

Yes, for bank statement loans. Lenders apply an expense factor to business accounts to estimate net income. Personal accounts show deposits directly.

Question 6

Which loan closes faster?

Accepted Answer

P&L loans can close faster if your CPA turns around the statement quickly. Bank statement loans take longer to underwrite due to document volume.

Bank Statement vs P&L Loans in Fountain Valley