Question 1

Do I need a CPA or can my bookkeeper prepare the P&L?

Accepted Answer

Most lenders require a licensed CPA signature. A bookkeeper or self-prepared statement will be rejected.

Question 2

Can I use a P&L loan to buy a rental property in Gridley?

Accepted Answer

Yes, but a DSCR loan often works better for rentals. The property's rent income drives qualification instead of your personal income.

Question 3

How long do I need to be self-employed to qualify?

Accepted Answer

Most P&L lenders require at least two years of self-employment. Some will consider one year with a strong overall file.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.

Question 5

What happens if my income dropped in one of the two years?

Accepted Answer

Lenders may average both years or use the lower year. A declining income trend raises flags — your broker needs to address it upfront.

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