Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA or tax professional must prepare it. Self-prepared P&L statements are not accepted by lenders.

Question 2

Do I need tax returns for this loan?

Accepted Answer

No. The P&L replaces tax returns as income documentation. That's the whole point of this loan type.

Question 3

How long must my business be operating?

Accepted Answer

Most lenders require 2 years in business. Some allow 1 year with strong compensating factors.

Question 4

Are P&L loan rates higher than conventional?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 5

Can I use a P&L loan for a Placerville property?

Accepted Answer

Yes. Non-QM lenders lend in El Dorado County. Property type and loan amount affect which lenders are available.

P&L Statement Loans for Placerville's Self-Employed