Question 1

Can I use personal bank statements for a business account loan?

Accepted Answer

Most lenders accept personal statements if you're a sole proprietor and business income flows through personal accounts. Business account statements work too if transactions are clear.

Question 2

How much does a CPA-prepared P&L cost for a mortgage?

Accepted Answer

Expect $300 to $1,000 depending on your business complexity and whether you already work with a CPA. Simple operations cost less than multi-entity structures.

Question 3

Which loan gives me higher qualifying income?

Accepted Answer

P&L loans often qualify you for more because they reflect actual profit. Bank statement loans subtract a flat expense ratio, which can reduce qualifying income by 25% to 50%.

Question 4

Do both loans require two years of self-employment history?

Accepted Answer

Yes, both typically need 12 to 24 months of business history. You can't qualify if you just started—lenders want proof of consistent income over time.

Question 5

Are interest rates the same for both programs?

Accepted Answer

Rates run similar since both are non-QM loans. Actual rates vary by borrower profile and market conditions, but expect 1% to 3% above conventional rates.

Bank Statement vs P&L Loans in Sonoma: Which Works for Self-Employed Borrowers?