Question 1

Can my business partner's CPA prepare the P&L?

Accepted Answer

No. The CPA must be independent of you and your business partners. Lenders verify licensing and check for conflicts of interest before accepting statements.

Question 2

What if my P&L shows income dropped this year?

Accepted Answer

Lenders typically average 12-24 months. A recent dip won't kill your deal if the overall trend shows stability, but be ready to explain the decrease.

Question 3

Do I need business tax returns too?

Accepted Answer

Most lenders want one or two years of business returns alongside the P&L. They cross-check consistency between filed returns and current statements.

Question 4

How long does P&L loan approval take?

Accepted Answer

Plan on 30-45 days from application. CPA verification and business document review add time compared to W-2 loans.

Question 5

Can I use projected P&L income?

Accepted Answer

No. Lenders require historical statements showing income you've already earned. Projections don't count for qualification purposes.

P&L Statement Loans for Self-Employed Borrowers in San Joaquin, CA