Question 1

Can I use personal bank statements instead of business?

Accepted Answer

Yes. Most lenders accept personal or business statements. Personal accounts typically get a higher income credit since fewer business expenses are deducted.

Question 2

Does my CPA have to be licensed to do a P&L loan?

Accepted Answer

Yes. Lenders require a CPA or licensed tax professional to prepare and sign the statement. A self-prepared P&L will not be accepted.

Question 3

Which loan has stricter credit requirements?

Accepted Answer

Both are non-QM and follow similar credit guidelines. Expect most lenders to require at least a 620 score, though 680+ gets better pricing.

Question 4

Can I use both bank statements and a P&L together?

Accepted Answer

Some lenders allow both docs to support your file. Ask your broker which combination produces the highest qualifying income for your situation.

Question 5

Are rates higher on P&L loans than bank statement loans?

Accepted Answer

Both carry non-QM pricing, which runs above conventional rates. Rates vary by borrower profile and market conditions — your specific file drives the number.

Question 6

Which loan closes faster in Exeter?

Accepted Answer

P&L loans often move faster since the doc count is lower. Bank statement reviews take longer when lenders must analyze 24 months of transactions.

Bank Statement vs P&L Loans in Exeter, CA