Question 1

Who prepares the P&L for this loan?

Accepted Answer

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

Question 2

Can I use one year of P&L statements?

Accepted Answer

Some lenders accept 12 months. Others require 24. Twelve-month programs usually come with stricter terms or higher rates.

Question 3

Do I need to show tax returns too?

Accepted Answer

No. That's the point of this loan. The P&L replaces tax returns as your income verification document.

Question 4

How does a P&L loan compare to a bank statement loan in Merced?

Accepted Answer

P&L loans rely on your CPA's income calculation. Bank statement loans average your deposits — which gets complicated fast.

Question 5

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

Accepted Answer

Most lenders want at least 620. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 6

Are P&L loans more expensive than conventional loans?

Accepted Answer

Yes, typically. Non-QM products carry higher rates than conventional loans. The tradeoff is qualifying without tax returns.

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