Question 1

Can I use my personal CPA or does the lender assign one?

Accepted Answer

You use your own licensed CPA. The lender verifies their credentials and reviews the P&L format for compliance with lending standards.

Question 2

What if my business is only 18 months old?

Accepted Answer

Most lenders require 24 months minimum. A few accept 12 months with higher rates and larger down payments, but that's rare.

Question 3

Do P&L loans work for LLC income or just sole proprietors?

Accepted Answer

Both work. LLCs need CPA statements showing your K-1 distributions or guaranteed payments, not just company profit.

Question 4

How much do P&L loans cost compared to conventional?

Accepted Answer

Expect 1-3% higher rates plus additional lender fees. Closing costs run similar to conventional loans.

Question 5

Can I buy investment property with a P&L loan?

Accepted Answer

Yes, though DSCR loans often price better for rentals. P&L loans make sense if you're buying multiple properties and need personal income qualification.

P&L Statement Loans in Monterey: Non-QM Financing for Self-Employed Borrowers