Question 1

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

Accepted Answer

No, lenders require you to choose one income documentation method. However, you may need to provide bank statements even with a P&L loan to verify assets for down payment and reserves.

Question 2

Which option gets me a lower rate in San Mateo?

Accepted Answer

Rates vary by borrower profile and market conditions, not documentation type. Both are non-QM loans with similar pricing. Your credit score and down payment affect rates more than your income verification method.

Question 3

How far back do my bank statements need to go?

Accepted Answer

Most bank statement programs require 12 or 24 months of consecutive statements. You'll need complete statements showing all pages, not just summary pages or screenshots.

Question 4

Does my CPA need to be local to San Mateo?

Accepted Answer

No, your CPA can be located anywhere as long as they're properly licensed and in good standing. They'll need to provide their credentials and sign the P&L statement they prepare.

Question 5

What if my business is less than two years old?

Accepted Answer

Bank statement loans often work better for newer businesses since you can use 12 months of statements. P&L loans typically require at least one full year of business operations documented by a CPA.

Bank Statement vs P&L Loans: Which Fits Your San Mateo Self-Employed Income?