Question 1

How recent must my profit and loss statements be?

Accepted Answer

Most lenders require P&L statements dated within 90-120 days of your loan application. Your CPA should prepare updated statements covering your most recent 12-24 months of business activity for the strongest application.

Question 2

Can I use my own bookkeeper instead of a CPA?

Accepted Answer

Lenders specifically require licensed CPA preparation for profit and loss statement loans. Bookkeeper-prepared statements do not meet underwriting guidelines, even if accurate and detailed.

Question 3

What if my business is less than two years old?

Accepted Answer

Most P&L programs require minimum two years of self-employment history. Newer businesses may need to explore other non-QM options like asset depletion loans or wait until reaching the two-year threshold.

Question 4

Do I need to show business tax returns at all?

Accepted Answer

Generally no. The primary benefit of P&L statement loans is avoiding tax return documentation. However, some lenders may request business licenses or articles of incorporation to verify business legitimacy.

Question 5

How do lenders verify my P&L income is real?

Accepted Answer

Lenders cross-reference your P&L statements against business bank account deposits. Your actual bank activity should support the income shown on your CPA-prepared statements for successful verification.

Profit & Loss Statement Loans in Del Rey Oaks: Flexible Financing for Self-Employed Homebuyers