Question 1

Can I use both bank statements and P&L together?

Accepted Answer

Some lenders allow it but most require one method. Using both doesn't typically increase your qualifying income since they measure the same earnings differently.

Question 2

Which method gives higher qualifying income?

Accepted Answer

Depends on your business. Bank statements at 75% of deposits often beat P&L if you have high gross revenue. P&L wins if expenses are low and net profit is strong.

Question 3

Do both require the same credit score?

Accepted Answer

Yes. Both are non-QM products with similar credit requirements. Expect 620 minimum for most programs, 640 for better rates.

Question 4

How long does underwriting take for each?

Accepted Answer

Bank statement loans close in 21-30 days typically. P&L loans add a week if your CPA needs time to prepare statements.

Question 5

Can I switch methods mid-application?

Accepted Answer

Yes, but it restarts the clock. Get both documentation types ready upfront if you're unsure which will qualify you better.

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