Question 1

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 rate pricing. Startup businesses under 2 years rarely qualify.

Question 2

Can I use my own accountant or does the lender assign one?

Accepted Answer

You use your own licensed CPA. Lenders verify their credentials and review formatting. Internal bookkeepers and non-CPA accountants don't meet requirements.

Question 3

What if my P&L shows a loss one quarter?

Accepted Answer

Lenders average income across the full period. One loss quarter won't kill the deal if overall trend is positive. Consistent losses mean denial.

Question 4

Are rates higher than conventional mortgages?

Accepted Answer

Yes, expect 1-2% above conventional rates. Non-QM pricing reflects higher lender risk. Your credit and down payment affect the exact premium.

Question 5

Can I combine P&L with other income sources?

Accepted Answer

Most lenders allow adding W-2 or 1099 income to P&L business income. This helps if business alone doesn't cover the mortgage. Documentation for both sources required.

P&L Statement Loans for Sierra Madre Self-Employed Borrowers