Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. Self-prepared statements are not accepted by lenders.

Question 2

Can I use one year of P&L history?

Accepted Answer

Some lenders accept 12 months. Others require 24. Shorter history typically means stricter terms or higher rates. Rates vary by borrower profile and market conditions.

Question 3

Do I still need tax returns?

Accepted Answer

Most P&L loan programs don't require tax returns. That's the core advantage over conventional income verification.

Question 4

Is a P&L loan right for my Kern County business?

Accepted Answer

If you write off heavily and your 1040 understates your income, it's a strong option. Talk to a broker who can compare it against bank statement alternatives.

Question 5

How does credit score affect my P&L loan rate?

Accepted Answer

Non-QM lenders tier pricing heavily by credit score. A 720 will get a meaningfully better rate than a 660. Rates vary by borrower profile and market conditions.

Question 6

Are P&L loans legal and above board?

Accepted Answer

Yes. They are non-QM loans, meaning they don't follow Fannie Mae guidelines. But they are fully legal and regulated lending products.

P&L Loans for Self-Employed Buyers in Maricopa, CA