Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Self-prepared statements are not accepted by lenders.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most lenders want at least two years. Some accept one year with strong financials and reserves.

Question 3

Can I use a P&L loan for a rural property in Mendocino County?

Accepted Answer

Yes, but rural properties get more scrutiny on appraisal. Some lenders restrict acreage or mixed-use land.

Question 4

How is income calculated from a P&L?

Accepted Answer

Lenders take the net income shown on the P&L and annualize it. Some use gross revenue with an expense factor.

Question 5

Is a P&L loan more expensive than a conventional loan?

Accepted Answer

Yes. Expect a higher rate and possibly higher fees. Rates vary by borrower profile and market conditions.

Question 6

What credit score do I need for a P&L loan in Ukiah?

Accepted Answer

Most lenders require 680 or higher. A stronger score improves your rate and lender options significantly.

P&L Loans for Self-Employed Buyers in Ukiah