Question 1

Can I apply for both programs and choose the better one?

Accepted Answer

Yes. We can run your numbers through both to see which produces a higher qualifying income. The stronger result is usually the right call.

Question 2

Do I need a CPA for a Bank Statement loan?

Accepted Answer

No CPA is required for Bank Statement loans. You'll need a licensed CPA to prepare and sign the P&L statement for that program.

Question 3

How far back do lenders look at bank statements?

Accepted Answer

Most lenders want 12 months minimum. Some programs require 24 months for better pricing or higher loan amounts.

Question 4

Are P&L loans harder to get approved?

Accepted Answer

Fewer lenders offer them, which limits your options. The approval itself isn't harder — it depends on what your CPA's P&L shows.

Question 5

Do these loans work for Solvang's hospitality and retail borrowers?

Accepted Answer

They're built for exactly that profile. Seasonal income swings don't disqualify you the way they would on a conventional loan.

Question 6

Are Non-QM rates higher than conventional rates?

Accepted Answer

Yes, Non-QM programs carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

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