Question 1

Does my CPA need to be local to Avenal?

Accepted Answer

No. Any licensed CPA can prepare the P&L. They just need to sign and date it on their letterhead.

Question 2

Can I use a P&L loan for a Kings County farm property?

Accepted Answer

It depends on the property type. Mixed-use or agricultural land may require a different loan program. Ask us before assuming.

Question 3

How recent does the P&L need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of your application. A stale P&L will slow your file down.

Question 4

What if my P&L shows a loss in one year?

Accepted Answer

A loss year is a problem. Lenders need to see consistent profitability. One bad year can disqualify you from most P&L programs.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use a P&L loan to buy, then refinance into a conventional once two years of tax returns show strong income.

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