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Paradise is rebuilding. Self-employed contractors, tradespeople, and small business owners are buying here — and most can't qualify with tax returns alone.
P&L loans fill that gap. A CPA prepares your profit and loss statement, and lenders use that to verify income instead of W-2s or tax transcripts.
660+
Typical Min Credit Score
CPA-Prepared P&L
Income Verification
10–20%
Down Payment
12 or 24 Months
P&L History Required
Profit & Loss Statement Loans in Paradise
Your CPA prepares a 12- or 24-month P&L statement. Lenders use the income shown there — not what your Schedule C reports after deductions.
Most lenders want a 660+ credit score and 10–20% down. Loan amounts and terms vary by lender and borrower profile.
Local decision guide
Use this guide to connect profit & loss statement loans eligibility, lender expectations, and local market factors before comparing payment options in Paradise.
Paradise is rebuilding. Self-employed contractors, tradespeople, and small business owners are buying here — and most can't qualify with tax returns alone.
P&L loans fill that gap. A CPA prepares your profit and loss statement, and lenders use that to verify income instead of W-2s or tax transcripts.
Your CPA prepares a 12- or 24-month P&L statement. Lenders use the income shown there — not what your Schedule C reports after deductions.
Big banks don't offer P&L loans. These are non-QM products — meaning they live in the wholesale lending space, not at your local branch.
We work with 200+ wholesale lenders at SRK CAPITAL. That means we can shop P&L programs across multiple investors to find terms that fit your deal.
The biggest mistake self-employed borrowers make: assuming their tax return income is what lenders see. On a P&L loan, your gross business income is what counts.
Get your CPA involved early. A poorly prepared P&L — or one that contradicts your bank statements — will kill the file before underwriting even starts.
Bank statement loans use 12–24 months of deposits to calculate income. P&L loans use your CPA's statement. Both are non-QM — neither uses tax returns.
If your bank deposits are irregular or mixed with business expenses, a P&L loan often produces a cleaner income picture than bank statements alone.
Paradise has attracted a wave of self-employed rebuilders since the Camp Fire. Contractors, consultants, and small shop owners are active buyers in Butte County.
Many show low taxable income on paper — exactly who P&L loans are designed for. The loan program fits the local buyer profile here better than most markets.
Your CPA or licensed tax professional prepares it. Lenders won't accept self-prepared P&L statements — the CPA's signature and credentials are required.
Many lenders require bank statements to support the P&L. They want to confirm the income shown is real and consistent with your business activity.
Yes. Property eligibility depends on the home's condition and appraised value. A rebuilt or permitted home in Paradise can qualify.
P&L loans require documentation — your CPA's statement. Stated income loans from the pre-2008 era required nothing. These are not the same product.
Most non-QM lenders want 660 or higher for P&L programs. Lower scores mean higher rates or larger down payment requirements. Rates vary by borrower profile and market conditions.
Plan for 30–45 days. Getting your CPA to prepare a clean, complete P&L early is the fastest way to avoid delays.