Question 1

Do both loans require self-employment?

Accepted Answer

Yes. Both are designed for self-employed borrowers who can't document income through W-2s or standard tax returns.

Question 2

Can I use personal bank statements instead of business?

Accepted Answer

Many lenders allow personal statements. Some require business statements. It depends on how your income flows.

Question 3

Does my CPA need to certify the P&L statement?

Accepted Answer

Yes. Lenders require a CPA-prepared and signed P&L. A self-prepared statement won't be accepted.

Question 4

Which loan has stricter credit requirements?

Accepted Answer

Requirements vary by lender, but both are non-QM and typically allow lower scores than conventional loans. Ask your broker to compare.

Question 5

Can I apply for both and choose the better outcome?

Accepted Answer

Yes. A good broker runs both scenarios before you commit. The qualifying income can differ enough to matter.

Bank Statement vs P&L Loans: Oxnard Self-Employed Buyers