Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper or self-prepared statements are rejected by lenders.

Question 2

Do I need tax returns with a P&L loan?

Accepted Answer

No. That's the point. Your CPA-prepared P&L replaces tax returns as the income document.

Question 3

How long do I need to be self-employed?

Accepted Answer

Most lenders want at least two years of self-employment history. Some allow 12 months with strong compensating factors.

Question 4

What credit score do I need for a P&L loan in Pacific Grove?

Accepted Answer

Plan for 660 or higher. Lower scores mean higher rates or tighter guidelines. Rates vary by borrower profile and market conditions.

Question 5

Can a P&L loan cover a jumbo purchase in Pacific Grove?

Accepted Answer

Yes. Many non-QM lenders offer jumbo P&L loans. Expect a larger down payment and stronger credit requirements.

Question 6

How does a P&L loan differ from a bank statement loan?

Accepted Answer

P&L loans use CPA-documented income. Bank statement loans calculate income from 12-24 months of actual deposits. Each method works differently depending on how your business operates.

P&L Statement Loans for Self-Employed Buyers in Pacific Grove