Question 1

Can I use a personal bank account for a bank statement loan?

Accepted Answer

Yes, most lenders accept personal accounts. Business accounts often get a better income calculation since fewer personal expenses muddy the deposits.

Question 2

Who qualifies to prepare the P&L statement?

Accepted Answer

It must be prepared by a licensed CPA or tax professional. A self-prepared P&L will not be accepted by any lender we work with.

Question 3

Do both loans have higher rates than conventional?

Accepted Answer

Yes. Both are non-QM products and carry higher rates. Rates vary by borrower profile and market conditions.

Question 4

How recent does the P&L statement need to be?

Accepted Answer

Most lenders want a P&L covering the last 12 months, dated within 60 days of application. Confirm with your CPA early.

Question 5

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

Accepted Answer

You can, but it restarts the income review. It's faster to decide upfront which path fits your documentation before submitting.

Bank Statement vs P&L Loans: Which Works for Sebastopol's Self-Employed?