Question 1

Do I need a perfect credit score for either loan?

Accepted Answer

No. Most lenders accept 620 FICO for bank statement and P&L loans. Scores above 680 get better rates. Below 620, approval becomes difficult. Your income documentation matters more than your credit.

Question 2

How much down payment do I need?

Accepted Answer

Both programs typically require 10 to 20 percent down. Some lenders go as low as 5 percent with strong income and reserves. The bigger your down payment, the faster approval moves.

Question 3

Which closes faster in Half Moon Bay?

Accepted Answer

Bank statement loans close in 30 to 35 days. P&L loans take 40 to 45 days because accountants must verify statements. If speed matters, bank statements win.

Question 4

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

Accepted Answer

Yes. Some lenders blend both if one method alone doesn't reach your needed income. This hybrid approach takes longer but may qualify you for a larger loan.

Question 5

What if my P&L doesn't match my tax returns?

Accepted Answer

Underwriters will ask for an explanation. Large gaps trigger requests for amended returns or accountant letters. Bank statement loans avoid this because deposits are factual and recent.

Bank Statement vs. P&L Loans in Half Moon Bay