Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare it. Lenders won't accept bookkeeper-prepared or self-prepared statements.

Question 2

Can I use one year of P&L?

Accepted Answer

Some lenders accept 12 months. Others require 24. It depends on the lender and your credit profile.

Question 3

Do P&L loans have higher rates than conventional?

Accepted Answer

Yes. Non-QM loans carry more risk for lenders, so rates run higher. Rates vary by borrower profile and market conditions.

Question 4

Will my tax write-offs hurt my application?

Accepted Answer

They can. Heavy deductions lower your reported income on the P&L. Talk to your CPA before submitting docs.

Question 5

Can I buy a farm or agricultural property with a P&L loan?

Accepted Answer

It depends on the lender and property type. Some non-QM lenders restrict agricultural land. We'll check eligibility for your specific property.

Question 6

How is a P&L loan different from a bank statement loan?

Accepted Answer

Bank statement loans use deposit records. P&L loans use your CPA's income summary. Both skip tax returns.

P&L Statement Loans for Self-Employed Buyers in Willows