Question 1

How recent must my P&L statement be for mortgage approval?

Accepted Answer

Most lenders require P&L statements dated within 90 days of application. The CPA must prepare the document specifically for mortgage purposes, covering the most recent 12-24 months of business operations.

Question 2

Can I use my own CPA or must they be independent?

Accepted Answer

The CPA must be licensed and independent from your business. You cannot prepare your own P&L statement even if you hold a CPA license. The lender will verify the CPA's credentials and independence.

Question 3

What income does the lender use from my P&L statement?

Accepted Answer

Lenders typically use net business income from the P&L, though some add back certain non-cash expenses like depreciation. Each lender calculates qualifying income differently, making broker guidance valuable.

Question 4

Do P&L statement loans work for investment properties in Moraga?

Accepted Answer

Yes, though DSCR Loans often provide better terms for investment properties since they qualify based on rental income. P&L loans work best for primary residences and second homes.

Question 5

How do interest rates on P&L loans compare in Contra Costa County?

Accepted Answer

Rates vary by borrower profile and market conditions but typically run 1-3% higher than conventional mortgages. Strong credit scores, larger down payments, and solid business documentation help secure better pricing.

Profit & Loss Statement Loans in Moraga: Income Verification for Self-Employed Homebuyers