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Piedmont sits in Alameda County with one of the Bay Area's highest concentrations of business owners and high-income self-employed professionals.
P&L loans exist for exactly this borrower. Your tax returns show losses. Your actual business generates real income. These loans bridge that gap.
680+
Min Credit Score
CPA-Prepared P&L
Income Doc
10–20%
Down Payment
2 Years Min
Self-Employment History
3–12 Months
Reserves Required
Your CPA prepares a 12- or 24-month P&L statement. The lender uses that income figure — not your Schedule C — to qualify you.
Most lenders want a 680+ credit score, 10-20% down, and at least 2 years of self-employment history. Cash reserves matter here too.
Most retail banks won't touch P&L loans. This is a wholesale non-QM product — you need a broker with access to specialty lenders.
HousingWire flagged Pennymac TPO expanding its non-QM wholesale suite, which signals more lender competition for self-employed borrowers. More competition means more options for you.
The biggest mistake I see: borrowers submit a P&L that doesn't match their bank deposits. Lenders cross-check. Inconsistencies kill deals fast.
Get your CPA involved early. The P&L format matters. Some lenders require a specific template. Find that out before you order the document.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use a single CPA document. Both work — the right choice depends on your business structure.
If your deposits are clean and consistent, bank statements often show higher income. If your deposits are messy or mixed with business expenses, a P&L can be cleaner.
Piedmont home prices push most deals into jumbo territory. P&L loans can go jumbo — but expect tighter reserves and lower LTV limits above $2M.
Alameda County property taxes run high. Your lender will factor that into your debt-to-income ratio. Make sure your P&L income covers the full payment comfortably.
A licensed CPA or tax professional must prepare and sign it. A bookkeeper or self-prepared statement won't qualify.
Yes. Jumbo P&L loans are available but typically require more reserves and a lower LTV than standard amounts.
Lenders use your net income from the P&L, sometimes with an expense factor applied. Each lender has its own method.
Most lenders accept 12 months. Some require 24. A 24-month P&L often gets you a better rate.
Most non-QM lenders require at least 680. Stronger scores improve your rate and lower the down payment required.
Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans in Piedmont