Question 1

Does the CPA need to be licensed in California?

Accepted Answer

Most lenders accept any licensed CPA in good standing. The signature and license number matter more than location, though some require the CPA to sign within 90 days of your application.

Question 2

Can I use QuickBooks reports instead of a CPA-prepared P&L?

Accepted Answer

No. Lenders require a licensed CPA signature on the profit and loss statement. Self-prepared or bookkeeper reports won't meet underwriting standards for this loan type.

Question 3

What if my business is only 18 months old?

Accepted Answer

Some lenders accept 12 months of P&L history for newer businesses. Expect stricter requirements like higher credit scores or larger down payments compared to established businesses.

Question 4

Will lenders add back depreciation to my qualifying income?

Accepted Answer

Most lenders add back depreciation because it's a non-cash expense. The specific treatment varies by lender, which is why shopping programs matters for maximizing your qualifying income.

Question 5

How do rates compare to conventional mortgages?

Accepted Answer

P&L loans typically run 1-2% higher than conventional rates as of February 2026. Stronger credit and larger down payments bring rates down within that range.

P&L Statement Loans in Sutter Creek: Income Verification That Fits Self-Employment