Question 1

Can I use personal bank statements instead of business ones?

Accepted Answer

Yes. Many lenders accept personal accounts. The key is that deposits must clearly reflect business income.

Question 2

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

Accepted Answer

A licensed CPA must prepare it. A self-prepared P&L will not be accepted by non-QM lenders.

Question 3

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

Accepted Answer

Rates vary by borrower profile and market conditions. Neither loan type is universally cheaper than the other.

Question 4

Do both loans require a minimum credit score?

Accepted Answer

Yes. Most non-QM lenders want at least 620 to 660. Stronger credit gets you better pricing on either product.

Question 5

Can I switch from P&L to bank statements mid-application?

Accepted Answer

Yes, but it resets some of the process. Tell your broker early — switching late costs time and sometimes money.

Question 6

Which loan closes faster in El Cajon?

Accepted Answer

P&L loans often close faster since there are fewer documents to review. Bank statement reviews take more underwriter time.

Bank Statement vs P&L Loans for El Cajon's Self-Employed