Question 1

Does my P&L have to be prepared by a CPA?

Accepted Answer

Yes. Lenders require a licensed CPA to prepare and sign it. Self-prepared statements or bookkeeper printouts will not be accepted.

Question 2

Can I use a P&L loan to buy a Napa winery property?

Accepted Answer

It depends on how the property is classified. Residential P&L loans cover homes you'll occupy. Mixed-use or commercial portions need a different product.

Question 3

How is income calculated from the P&L?

Accepted Answer

Lenders typically average net income over 12 or 24 months. Some use gross revenue with an expense factor — terms vary by lender.

Question 4

What credit score do I need?

Accepted Answer

Most non-QM lenders start at 660. Higher scores improve your rate and reduce reserve requirements. Rates vary by borrower profile and market conditions.

Question 5

How does a P&L loan compare to a bank statement loan?

Accepted Answer

Bank statement loans use deposit history. P&L loans use your CPA's income summary. Some borrowers qualify for both — compare rates before choosing.

Question 6

Are P&L loans available for investment properties in Napa?

Accepted Answer

Some non-QM lenders allow P&L income verification on investment properties. A DSCR loan may be simpler if the property generates rental income.

P&L Loans for Self-Employed Buyers in Napa