Question 1

How recent does my P&L need to be?

Accepted Answer

Most lenders want it dated within 90 days of application. If your CPA prepared it in December and you apply in March, you'll need an updated statement.

Question 2

Can I use my bookkeeper instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA signature. Enrolled agents sometimes work if the lender explicitly allows it, but CPAs are standard.

Question 3

What if my business income dropped last year?

Accepted Answer

Lenders average the most recent 12-24 months. A down year gets blended with stronger months. Declining trends over two years make approval harder.

Question 4

Do these loans work for partnerships?

Accepted Answer

Yes, but the P&L needs to show your share of partnership income clearly. The CPA letter must specify your ownership percentage and distributions.

Question 5

Can I refinance with a P&L loan?

Accepted Answer

Absolutely. Rate-and-term refinances work the same as purchases. Cash-out refinances have slightly tighter requirements—usually 15-20% equity minimum.

P&L Loans in Nevada City: Write-Offs Don't Kill Your Mortgage Anymore