Question 1

Does my CPA need special qualifications to prepare the P&L?

Accepted Answer

Your CPA must hold an active license and cannot be a family member. Most lenders require a signed letter from the CPA verifying the P&L accuracy.

Question 2

Can I use P&L loans for investment properties in Martinez?

Accepted Answer

Some lenders allow P&L documentation for investment properties, but DSCR loans usually work better. DSCR programs qualify you on rental income, not personal income.

Question 3

How do rates compare to conventional mortgages?

Accepted Answer

P&L loans typically run 0.5-2% higher than conventional rates. Stronger credit and larger down payments reduce the rate premium significantly.

Question 4

What if my business is less than two years old?

Accepted Answer

Most P&L programs require two years in business. If you have less, bank statement loans sometimes approve with one year of strong deposits.

Question 5

Do I need to provide business tax returns at all?

Accepted Answer

Usually not. The P&L statement replaces tax return verification, which is the whole point of this program for borrowers with heavy write-offs.

Profit & Loss Statement Loans in Martinez — Flexible Financing for Self-Employed Borrowers