Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Self-prepared or bookkeeper statements are not accepted by lenders.

Question 2

Can I use a P&L loan for a Calistoga vacation rental?

Accepted Answer

Yes, if you're buying as a primary or second home. For investment properties, a DSCR loan may be a better fit.

Question 3

Do I need to show tax returns at all?

Accepted Answer

No. That's the point of a P&L loan. Tax returns are not required, which helps when write-offs reduce taxable income.

Question 4

How long does my business need to be operating?

Accepted Answer

Most lenders require 2 years of self-employment history. Some accept 1 year with strong compensating factors.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 6

What loan amounts are available in Napa County?

Accepted Answer

P&L loans are non-QM, so conforming limits don't apply. Many lenders go well above conventional caps for qualified borrowers.

P&L Statement Loans for Calistoga's Self-Employed Buyers