Question 1

Does my CPA have to prepare the P&L, or can I do it myself?

Accepted Answer

It must be prepared and signed by a licensed CPA. Self-prepared statements are rejected by nearly every non-QM lender.

Question 2

How recent does the P&L statement need to be?

Accepted Answer

Most lenders require it to be dated within 60 days of your loan application. A stale P&L will delay or kill your approval.

Question 3

Can I use a P&L loan to buy a home in Corcoran with 10% down?

Accepted Answer

Some lenders allow 10% down, but 20% is more common at better rates. Your credit score and reserves also factor in. Rates vary by borrower profile and market conditions.

Question 4

Will my business write-offs hurt my qualifying income?

Accepted Answer

That's the main advantage of a P&L loan. The lender uses gross profit from the P&L — not your tax return's taxable income.

Question 5

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders require at least 2 years of self-employment. You'll need a business license or CPA letter to verify that history.

Question 6

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM loans carry more lender risk, so rates run higher than conventional. Rates vary by borrower profile and market conditions.

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