Question 1

Does my CPA need special certification to prepare this?

Accepted Answer

No special certification required. Your CPA just needs to sign and date the statement. Lenders verify their license independently.

Question 2

Can I use a P&L loan for a rental property in Costa Mesa?

Accepted Answer

P&L loans cover primary residences and second homes. For investment properties, a DSCR loan usually fits better.

Question 3

How recent does the P&L statement need to be?

Accepted Answer

Most lenders want it dated within 60 days of your loan application. Ask your CPA to prepare it close to when you apply.

Question 4

Will my interest rate be higher than a conventional loan?

Accepted Answer

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

Question 5

What if my business is less than two years old?

Accepted Answer

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

Question 6

Is a 12-month or 24-month P&L better for qualifying?

Accepted Answer

It depends on your income trend. A 24-month average smooths out volatility. A 12-month works if recent income is stronger.

P&L Loans for Self-Employed Buyers in Costa Mesa