Question 1

Can I use both bank statements and a P&L on the same loan?

Accepted Answer

Most lenders pick one method per loan file. Using both creates conflicting income calculations that slow underwriting.

Question 2

Do I need a CPA or will any accountant work for P&L loans?

Accepted Answer

You need a licensed CPA or enrolled agent. Bookkeepers and unlicensed accountants don't meet lender requirements for income verification.

Question 3

Which program accepts lower credit scores in Foster City?

Accepted Answer

Both programs typically require 620 minimum. Some portfolio lenders go to 600, but rates jump significantly below 640.

Question 4

How do lenders calculate income from bank statements?

Accepted Answer

They take total deposits and multiply by 50-75% depending on the program. Business expenses get backed out through the percentage, not line by line.

Question 5

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

Accepted Answer

Yes, but it restarts underwriting. Better to choose correctly upfront based on your business structure and available documentation.

Bank Statement vs P&L Loans in Foster City: Which Self-Employed Path Works Best?