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Chico has a strong base of self-employed residents — contractors, consultants, small business owners. Standard tax returns often kill their mortgage applications.
A P&L loan skips the tax return entirely. Your CPA prepares a profit and loss statement, and that becomes your income proof.
680+
Min Credit Score
CPA-Signed P&L
Income Doc
10-20%
Down Payment
12 or 24 Months
P&L Period
Profit & Loss Statement Loans in Chico
Your CPA signs off on a 12- or 24-month P&L statement. Lenders use that figure — not your Schedule C — to calculate qualifying income.
Most lenders want a 680+ credit score and 10-20% down. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect profit & loss statement loans eligibility, lender expectations, and local market factors before comparing payment options in Chico.
Chico has a strong base of self-employed residents — contractors, consultants, small business owners. Standard tax returns often kill their mortgage applications.
A P&L loan skips the tax return entirely. Your CPA prepares a profit and loss statement, and that becomes your income proof.
Your CPA signs off on a 12- or 24-month P&L statement. Lenders use that figure — not your Schedule C — to calculate qualifying income.
Your local bank won't offer this. P&L loans are non-QM products — they live in the wholesale channel with specialty lenders.
We work with 200+ wholesale lenders at SRK CAPITAL. Several have strong P&L programs with competitive terms for Butte County borrowers.
The most common mistake: borrowers hand over a P&L their bookkeeper threw together. Lenders reject those fast.
The CPA must be licensed, and many lenders will verify. Get a clean, signed statement before you apply — it saves weeks.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use your CPA's net figure. One isn't better — it depends on your business.
If your deposits look inconsistent but your profits are steady, the P&L path often works better. We run both scenarios before committing.
Butte County has seen rebuilding activity since the Camp Fire. Many contractors and trades in the area run their own businesses — exactly who this loan serves.
Chico's housing stock spans a wide price range. P&L loans can work at moderate price points, not just high-end purchases.
Yes. Most lenders require a California-licensed CPA. An unlicensed bookkeeper won't satisfy this requirement.
Some lenders allow 10% down on P&L loans. Expect stricter credit and reserve requirements at that down payment level.
Most lenders want two years of self-employment history. Some will accept one year with strong compensating factors.
Lenders look at the overall 12 or 24-month picture. One slow month won't disqualify you, but a trend of losses will.
Yes. Non-QM loans carry higher rates than conventional products. Rates vary by borrower profile and market conditions.
Yes. Many borrowers use a P&L loan to purchase, then refinance once they can show two years of qualifying tax returns.