Question 1

How recent does my P&L need to be?

Accepted Answer

Most lenders want a P&L dated within 90 days of loan application. Your CPA can update it during underwriting if needed.

Question 2

Can I use a P&L if I've only been self-employed one year?

Accepted Answer

Some lenders accept one year if you worked in the same industry as a W-2 employee before. Two years self-employed is standard.

Question 3

What if my P&L shows a loss one month?

Accepted Answer

Seasonal fluctuations are fine if your CPA explains them. Consistent losses or negative trends will disqualify you.

Question 4

Do lenders check my actual tax returns with a P&L loan?

Accepted Answer

Some lenders request them for context, but they don't use them to calculate qualifying income. The P&L determines your approval.

Question 5

Can I refinance with a P&L loan?

Accepted Answer

Yes. Rate-and-term refinances work the same as purchases. Cash-out refinances typically need 20-25% equity remaining.

Profit & Loss Statement Loans in Fowler: Finance Your Business Without Tax Returns