Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper or self-prepared statements will be rejected by lenders.

Question 2

Can I use a P&L loan on a Ferndale property?

Accepted Answer

Yes. P&L loans work on primary residences, second homes, and investment properties. Rural properties may require an appraisal review.

Question 3

How does the lender calculate my income?

Accepted Answer

They use the net income figure from your P&L — not your tax return income. This often produces a higher qualifying number.

Question 4

What credit score do I need?

Accepted Answer

Most lenders want 660 or higher for P&L loans. Some go lower with a larger down payment. Rates vary by borrower profile and market conditions.

Question 5

How is this different from a bank statement loan?

Accepted Answer

Bank statement loans analyze your actual deposits. P&L loans rely on your CPA's income summary instead. Both are non-QM products.

Question 6

Are P&L loan rates higher than conventional rates?

Accepted Answer

Typically yes — non-QM carries a rate premium. The tradeoff is qualifying with income that conventional loans can't use. Rates vary by borrower profile and market conditions.

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