Question 1

Does my CPA need special credentials for P&L loans?

Accepted Answer

Your CPA must hold an active license and cannot be related to you or involved in your business. Most lenders verify the CPA's license directly with the state board.

Question 2

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

Accepted Answer

Yes, but most lenders require primary residence or second home use for P&L programs. For investment properties, DSCR loans that qualify on rental income usually work better.

Question 3

How recent do my P&L statements need to be?

Accepted Answer

Most lenders want statements dated within 90 days of closing. Some require quarterly updates if your file takes longer than three months to fund.

Question 4

What if my business is only 18 months old?

Accepted Answer

A few lenders accept 12 months of P&L with strong profit margins. Most want 24 months of operating history to reduce their risk on self-employed borrowers.

Question 5

Do P&L loans have prepayment penalties?

Accepted Answer

Many non-QM lenders include 2-3 year prepayment penalties to offset higher risk. We shop for programs that either reduce or eliminate those penalties based on your profile.

P&L Statement Loans in San Pablo: Financing for Self-Employed Borrowers