Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders reject P&Ls from bookkeepers or self-prepared documents.

Question 2

Do I need two years of self-employment history?

Accepted Answer

Most lenders want at least 2 years. Some non-QM programs allow 1 year with strong compensating factors.

Question 3

Can I use a P&L loan to buy in King City?

Accepted Answer

Yes. P&L loans work for purchase and refinance. There are no county restrictions blocking this program in Monterey County.

Question 4

How is the P&L loan different from a bank statement loan?

Accepted Answer

Bank statement loans use deposit history. P&L loans use a CPA summary of revenue and expenses. Each suits different financial setups.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 6

What if my P&L shows a loss in one year?

Accepted Answer

A loss year can disqualify you or reduce your qualifying income. Lenders want to see consistent or growing profitability.

P&L Statement Loans for Self-Employed Buyers in King City