Question 1

Do both loans require good credit?

Accepted Answer

Yes. Non-QM lenders still check credit. Most require at least 620, and better scores get better rates.

Question 2

Can I use personal bank statements?

Accepted Answer

Yes, on a bank statement loan. Lenders apply an expense factor to estimate business income from personal deposits.

Question 3

Does my CPA need to be licensed for a P&L loan?

Accepted Answer

Yes. Lenders require a CPA-prepared and signed statement. A bookkeeper-prepared P&L typically won't qualify.

Question 4

Which loan closes faster in Moorpark?

Accepted Answer

P&L loans can close faster if your CPA is available. Bank statement loans take longer to underwrite due to statement volume.

Question 5

Can I switch from one to the other mid-application?

Accepted Answer

Yes, but it restarts parts of underwriting. Decide early which income method your lender will use.

Question 6

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

Accepted Answer

Often yes. P&L loans are seen as slightly higher risk. Rates vary by borrower profile and market conditions.

Bank Statement vs P&L Loans: Which Fits Your Moorpark Business?