Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders won't accept self-prepared documents.

Question 2

Does this loan require tax returns?

Accepted Answer

No tax returns required. The P&L replaces them as your income verification document.

Question 3

Can I get a jumbo loan using a P&L?

Accepted Answer

Yes, but fewer lenders offer jumbo non-QM. In Belvedere, most loans fall into this range.

Question 4

How long does the P&L need to cover?

Accepted Answer

Most lenders want 12 to 24 months. A 24-month P&L typically gets you better pricing.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM rates run higher than conforming. Rates vary by borrower profile and market conditions.

Question 6

What if my business income fluctuates?

Accepted Answer

Lenders average the income over the P&L period. Consistent or growing income reads best to underwriters.

P&L Loans for Self-Employed Buyers in Belvedere