Question 1

Can I use personal bank statements instead of business?

Accepted Answer

Yes. Many lenders accept personal accounts. Business accounts may require an expense ratio adjustment to calculate income.

Question 2

Does my CPA need to be licensed to do the P&L?

Accepted Answer

Yes. Lenders require a CPA or licensed tax preparer to prepare and sign the P&L statement. Unlicensed preparer documents get rejected.

Question 3

Which loan type has lower rates in Gilroy?

Accepted Answer

Bank statement loans typically have more lender competition, which can produce better rates. Rates vary by borrower profile and market conditions.

Question 4

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

Accepted Answer

Yes, but it restarts parts of underwriting. Flag this early — switching late adds weeks to your timeline.

Question 5

How many months of P&L does the lender need?

Accepted Answer

Most lenders want a 12-month P&L. Some require year-to-date plus the prior full year, especially for larger loan amounts.

Question 6

Do both loans work for Gilroy purchase and refinance?

Accepted Answer

Yes. Both are available for purchases and refinances. Investment properties may face tighter guidelines on either program.

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