Question 1

Does my CPA have to be licensed in California?

Accepted Answer

Yes. Most lenders require a California-licensed CPA. An unlicensed bookkeeper won't satisfy this requirement.

Question 2

Can I use a P&L loan to buy in Chico with 10% down?

Accepted Answer

Some lenders allow 10% down on P&L loans. Expect stricter credit and reserve requirements at that down payment level.

Question 3

How long must I be self-employed to qualify?

Accepted Answer

Most lenders want two years of self-employment history. Some will accept one year with strong compensating factors.

Question 4

What if my P&L shows a loss for one month?

Accepted Answer

Lenders look at the overall 12 or 24-month picture. One slow month won't disqualify you, but a trend of losses will.

Question 5

Is a P&L loan more expensive than a conventional loan?

Accepted Answer

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

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use a P&L loan to purchase, then refinance once they can show two years of qualifying tax returns.

P&L Statement Loans for Self-Employed Buyers in Chico