Question 1

Can I use both personal and business bank statements?

Accepted Answer

Yes. Most lenders accept either. Business accounts use an expense factor to estimate net income. Personal accounts are taken more at face value.

Question 2

Does my CPA have to be licensed in California?

Accepted Answer

For P&L Loans, lenders typically require a licensed CPA. Most require a California CPA, but guidelines vary by lender.

Question 3

Which loan has better rates — bank statement or P&L?

Accepted Answer

Rates are similar across both. They're priced as non-QM loans. Rates vary by borrower profile and market conditions.

Question 4

How recent does the P&L statement need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of application. Your CPA should be ready to move quickly once you're under contract.

Question 5

What credit score do I need for either loan?

Accepted Answer

Most non-QM lenders in this space want a 620 minimum. Better scores mean better rates and higher loan amounts.

Question 6

Can I switch from bank statement to P&L mid-process?

Accepted Answer

Yes, but it resets your income calculation and can delay closing. Get aligned with your broker early to avoid that.

Bank Statement vs P&L Loans: Which Fits Your Fullerton Business?