Question 1

Who prepares the P&L statement?

Accepted Answer

Your CPA or licensed tax professional must prepare it. A self-prepared P&L will not be accepted by lenders.

Question 2

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 document.

Question 3

How much can I borrow in Carmel-By-The-Sea?

Accepted Answer

P&L loans can fund into the jumbo range. Loan limits depend on lender, credit, and down payment.

Question 4

How long do I need to be self-employed?

Accepted Answer

Most lenders require 2 years of self-employment history. Some accept 1 year with strong compensating factors.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

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

Question 6

Can I use a P&L loan to buy a second home in Carmel?

Accepted Answer

Yes. Non-QM lenders allow second home and investment purchases. Expect a higher down payment requirement.

P&L Statement Loans in Carmel-By-The-Sea