Question 1

How far back must my P&L statement cover?

Accepted Answer

Most lenders require a year-to-date P&L statement covering the most recent 12 months. Some programs accept statements as short as 6 months for established businesses with strong financials.

Question 2

Can I use my own accountant or must they be a CPA?

Accepted Answer

The preparer must hold an active CPA license. Bookkeepers and non-licensed accountants cannot prepare acceptable P&L statements for mortgage qualification purposes.

Question 3

What if my business shows seasonal income variations?

Accepted Answer

Seasonal businesses can qualify if the P&L demonstrates adequate annual income. Lenders may average monthly earnings or focus on year-to-date totals rather than recent months alone.

Question 4

Do these loans work for newly self-employed borrowers?

Accepted Answer

Generally no. Most programs require 12-24 months of self-employment history. Borrowers with less than one year typically need to pursue traditional financing or wait until meeting the experience requirement.

Question 5

How do lenders verify the P&L statement accuracy?

Accepted Answer

Lenders request 12-24 months of business bank statements to confirm deposits match reported revenue. They contact the CPA directly to verify they prepared the statement and may request additional supporting documentation.

Profit & Loss Statement Loans in Norwalk: Financing Solutions for Self-Employed Homebuyers