Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare and sign it. You cannot write your own P&L — lenders won't accept it.

Question 2

Can I use a P&L loan to buy in Arcata with cannabis income?

Accepted Answer

Some non-QM lenders accept cannabis business income. Not all do. Working with a broker who knows which lenders allow it saves time.

Question 3

How is this different from a bank statement loan?

Accepted Answer

Bank statement loans average your deposits. P&L loans use your accountant's profit figures. Both are non-QM — the right one depends on your business.

Question 4

What credit score do I need?

Accepted Answer

Most P&L lenders want at least 620 to 660. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 5

Do P&L loans cost more than conventional loans?

Accepted Answer

Yes, rates run higher than conventional. That's the tradeoff for flexible income documentation. Rates vary by borrower profile and market conditions.

Question 6

How long does a P&L loan take to close?

Accepted Answer

Comparable to a standard non-QM loan — typically 21 to 30 days with clean documentation. A disorganized P&L will add time.

P&L Loans for Arcata's Self-Employed Borrowers