Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA or enrolled agent must prepare and sign it. A bookkeeper or self-prepared document won't be accepted by lenders.

Question 2

Can I use a P&L loan to buy in Greenfield with 10% down?

Accepted Answer

Some lenders allow 10% down at higher credit scores. Most programs are more comfortable at 20% down for P&L borrowers.

Question 3

Do I still need two years of self-employment history?

Accepted Answer

Yes. Most P&L lenders require two years of documented self-employment. A business license and CPA letter help establish that.

Question 4

How is my income calculated from the P&L?

Accepted Answer

Lenders use net income shown on the CPA-prepared P&L. They may apply an expense factor or use gross revenue depending on the program.

Question 5

How does a P&L loan rate compare to a conventional loan?

Accepted Answer

Expect a rate premium over conventional. Non-QM flexibility comes at a cost. Rates vary by borrower profile and market conditions.

Question 6

Can agricultural business owners in Greenfield use this loan?

Accepted Answer

Yes — farm operators and ag contractors are strong candidates. The key is two years of business history and a CPA-signed P&L.

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