Question 1

Can I use a P&L statement I prepared myself?

Accepted Answer

No. Lenders require a licensed CPA to prepare and certify the P&L statement. Self-prepared financials don't meet underwriting standards.

Question 2

What if my P&L shows strong income but my tax return shows a loss?

Accepted Answer

That's the whole point of P&L loans. Lenders use the P&L income, not tax return income, for qualification purposes.

Question 3

Do I need two years of P&L statements or just one?

Accepted Answer

Most lenders require 12-24 months depending on loan amount. They'll also want two years of business returns to verify business existence.

Question 4

How do rates compare to conventional loans in Rolling Hills Estates?

Accepted Answer

Expect rates 1.5-3% higher than conventional. Rates vary by borrower profile and market conditions based on credit, down payment, and property type.

Question 5

Can I use P&L income from multiple businesses?

Accepted Answer

Yes, if you own 25%+ of each business. Your CPA must prepare separate P&L statements for each entity you want counted.

P&L Statement Loans for Self-Employed Borrowers in Rolling Hills Estates