Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

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

Question 2

Do I need two years of business history?

Accepted Answer

Most lenders prefer two years. Some allow 12-month P&Ls for newer businesses, but expect higher rates or stricter terms.

Question 3

Can I use a P&L loan to buy in a rural area like Willits?

Accepted Answer

Yes. Property eligibility depends on the lender, not the loan type. We work with lenders comfortable in rural Mendocino County.

Question 4

How does this differ from a bank statement loan?

Accepted Answer

Bank statement loans analyze your actual deposits. P&L loans use your CPA's certified income figure. Different lenders favor different approaches.

Question 5

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

Accepted Answer

Most lenders require 680 or higher. Scores below that limit your options significantly. Rates vary by borrower profile and market conditions.

Question 6

Are rates higher on P&L loans than conventional loans?

Accepted Answer

Yes, typically. Non-QM pricing reflects added lender risk. Rates vary by borrower profile and market conditions.

P&L Loans for Self-Employed Buyers in Willits, CA