Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare it. Lenders won't accept a self-prepared document — it has to come from your accountant.

Question 2

Can I use a P&L loan to buy farmland in Glenn County?

Accepted Answer

P&L loans cover residential property. Bare farmland typically requires a different loan type — ask us about your specific property.

Question 3

How is qualifying income calculated from a P&L?

Accepted Answer

Lenders average your net profit over 12 or 24 months. Some programs add back depreciation — your accountant's line items matter.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM rates run higher than conventional. The trade-off is qualifying without tax returns. Rates vary by borrower profile and market conditions.

Question 5

Do I need to be self-employed for a certain number of years?

Accepted Answer

Most lenders want at least two years of self-employment history. Some programs accept one year with strong compensating factors.

Question 6

What if my P&L shows a loss in one year?

Accepted Answer

One down year can hurt your qualifying income significantly. A 24-month average smooths it out — but lenders will scrutinize a loss year closely.

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