Question 1

Can I use a P&L statement I prepared myself?

Accepted Answer

No. Lenders require an independent licensed CPA to prepare your profit and loss statement. The CPA cannot be a family member, business partner, or someone with a financial interest in your transaction.

Question 2

How far back does my P&L statement need to go?

Accepted Answer

Most lenders require a minimum 12-month P&L statement, though some prefer 24 months. Your CPA must cover a continuous period ending recently, typically within the last 60-90 days of application.

Question 3

What if my business is less than two years old?

Accepted Answer

Some lenders accept one year of self-employment with strong compensating factors like high credit scores, larger down payments, or significant reserves. Requirements vary widely among non-QM lenders.

Question 4

Are P&L loan rates much higher than conventional mortgages?

Accepted Answer

Yes, expect higher rates due to alternative documentation. Rates vary by borrower profile and market conditions. Strong credit, substantial down payments, and solid business performance help secure better pricing.

Question 5

Can I refinance my Orinda home with a P&L loan?

Accepted Answer

Absolutely. P&L statement loans work for both purchases and refinances. Many self-employed homeowners use these programs to access equity or improve terms on existing mortgages without tax return documentation.

Profit & Loss Statement Loans in Orinda: Financing Solutions for Self-Employed Professionals