Question 1

Does my CPA have to be licensed in California?

Accepted Answer

Yes. Most lenders require a California-licensed CPA to prepare and sign the P&L. An out-of-state or unlicensed preparer won't cut it.

Question 2

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

Accepted Answer

Some lenders allow 10% down on P&L loans. Expect mortgage insurance or a rate adjustment at lower down payment levels.

Question 3

How recent does the P&L statement need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of your loan application. Your CPA needs to certify it reflects current business performance.

Question 4

Will my rate be higher than a conventional loan?

Accepted Answer

Yes. Non-QM loans carry a rate premium over conventional. The gap varies by lender and your credit profile. Rates vary by borrower profile and market conditions.

Question 5

What if my business had a down year on the P&L?

Accepted Answer

A weak year can reduce your qualifying income significantly. A 24-month average smooths that out — one strong year plus one slow year may still work.

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