Question 1

Does my CPA need to be local to Berkeley?

Accepted Answer

No. Any licensed CPA can prepare the P&L. They just need to sign it and be verifiable. Lenders will confirm their license.

Question 2

Can I use a P&L loan to buy in Berkeley without two years of self-employment?

Accepted Answer

Most lenders require 2 years of self-employment history. Some allow 1 year with strong compensating factors like high credit or large reserves.

Question 3

How is the income calculated from my P&L?

Accepted Answer

Lenders use your net profit from the P&L, then apply their own income calculation formula. Some use 100% of net profit, others use less.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 5

What loan amounts are available in Alameda County?

Accepted Answer

P&L loans are not government-backed, so there's no hard county limit. Lenders set their own maximums, often up to $3M or more.

Question 6

Can I refinance with a P&L loan in Berkeley?

Accepted Answer

Yes. P&L loans are available for purchase and refinance. You'll need the same CPA documentation either way.

P&L Loans for Self-Employed Borrowers in Berkeley