Question 1

Can I use both personal and business bank statements?

Accepted Answer

Yes, most lenders accept either. If you mix personal and business income in one account, bank statement loans often work better than P&L documentation.

Question 2

Do P&L loans require tax returns?

Accepted Answer

Usually not for income verification. Lenders may request returns to confirm you file taxes, but they don't use them to calculate qualifying income.

Question 3

Which option has lower rates?

Accepted Answer

Rates are similar since both are non-QM products. Your credit score and down payment affect pricing more than documentation type.

Question 4

How long does underwriting take for each?

Accepted Answer

Bank statement loans typically close in 21-30 days. P&L loans take similar time once your CPA provides documentation.

Question 5

What credit score do I need?

Accepted Answer

Most programs require 620 minimum. Some lenders go lower with larger down payments, but expect pricing adjustments below 640.

Bank Statement vs P&L Loans in Norco: Which Self-Employed Option Fits You?