Question 1

Does my CPA need special licensing for P&L loans?

Accepted Answer

Your CPA needs an active license in good standing. Most lenders verify credentials directly through state databases before accepting the statement.

Question 2

Can I use a P&L that's only 6 months old?

Accepted Answer

Most lenders require 12-24 months. A 6-month P&L won't qualify you unless you have prior year tax returns to supplement it.

Question 3

What if my business shows a loss on the P&L?

Accepted Answer

A net loss kills qualification for that income source. You'll need positive cash flow over the statement period to meet lender requirements.

Question 4

Do P&L loans work for investment properties in Taft?

Accepted Answer

Yes, though DSCR loans often make more sense for rentals. P&L loans require personal income verification that DSCR programs skip entirely.

Question 5

How much higher are rates compared to conventional loans?

Accepted Answer

Expect 1.5-3% above conventional rates depending on your profile. Rates vary by borrower profile and market conditions.

Profit & Loss Statement Loans for Self-Employed Borrowers in Taft, CA