Question 1

Who prepares my P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper-prepared or self-prepared statements are rejected by most lenders.

Question 2

Do I need two years of P&L statements?

Accepted Answer

Some lenders accept 12 months. Others require 24. The period used affects your qualifying income amount.

Question 3

Can I use a P&L loan for a jumbo purchase in Marin?

Accepted Answer

Yes. Several non-QM wholesale lenders offer P&L programs well above conventional loan limits. Rates vary by borrower profile and market conditions.

Question 4

How is my income calculated from the P&L?

Accepted Answer

Lenders take your net profit from the P&L and divide by months covered. Some add back certain expenses.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM programs carry a rate premium for flexible income documentation. Rates vary by borrower profile and market conditions.

Question 6

What if my business is less than two years old?

Accepted Answer

Some lenders require at least two years in business. Others accept 12 months with a strong P&L and credit profile.

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