Question 1

Does my CPA have to be licensed in California?

Accepted Answer

Yes. Lenders require a currently licensed CPA to sign the P&L. An unlicensed preparer won't meet the requirement.

Question 2

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

Accepted Answer

Some lenders allow 10% down on P&L loans. It depends on your credit score and the loan amount.

Question 3

Will lenders look at my tax returns too?

Accepted Answer

Not always. Some P&L programs require no tax returns at all. Others may request them for reference only.

Question 4

How is qualifying income calculated from a P&L?

Accepted Answer

Lenders take your net income from the P&L and divide it across the loan period. Some use gross revenue with an expense factor.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM products like P&L loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 6

What if my business is new — can I still qualify?

Accepted Answer

Most lenders want at least 2 years of self-employment history. A newer business makes approval much harder.

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