Question 1

Can my bookkeeper prepare the P&L instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA signature and certification. Some accept enrolled agents, but bookkeeper-prepared statements don't qualify regardless of accuracy.

Question 2

How far back do P&L statements need to go?

Accepted Answer

Most lenders require 12-24 months of statements. Two years shows income stability and reduces rates. Single-year P&Ls qualify with some lenders but cost more.

Question 3

What if my P&L shows income but tax returns show losses?

Accepted Answer

This works if your CPA can document legitimate business expenses that reduce taxable income. Lenders verify the business exists and deposits support P&L income claims.

Question 4

Do P&L loans work for new businesses under two years old?

Accepted Answer

Rarely. Most lenders want two years of business history in the same industry. Exceptions exist for licensed professionals transitioning to private practice with documented prior income.

Question 5

Can I refinance using P&L documentation?

Accepted Answer

Yes. Refinance guidelines match purchase loans. You still need CPA-prepared statements and credit/down payment requirements apply based on new loan-to-value ratios.

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