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Newport Beach runs on entrepreneurs, consultants, and business owners. Tax returns rarely tell the full story of what these borrowers actually earn.
A P&L loan uses a CPA-prepared profit and loss statement to verify income. No W-2s, no tax return write-off problems.
680+
Min Credit Score
CPA-Prepared P&L
Income Doc
10–20%
Down Payment
12 or 24 Months
P&L Period
Non-QM
Loan Type
Your CPA prepares a 12- or 24-month P&L statement. Lenders use that income figure — not your Schedule C after deductions.
Most lenders want a 680+ credit score and 10-20% down. Loan amounts can reach into jumbo territory, which matters in Newport Beach.
P&L loans are non-QM products. Your bank almost certainly doesn't offer them. You need a broker with wholesale non-QM access.
Rates run higher than conventional. Bankrate's latest survey shows conforming rates at 6.27% — P&L loans typically price above that. Rates vary by borrower profile and market conditions.
The CPA letter is everything. Lenders scrutinize who signed it and how the numbers were calculated. A sloppy P&L kills deals.
We see deals fall apart when borrowers use their bookkeeper instead of a licensed CPA. Get that detail right before you apply.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use your CPA's summary instead — less paperwork, more interpretation.
If your deposits are messy or commingled, a P&L loan can actually be cleaner. Your CPA controls the narrative your lender sees.
Newport Beach property values push most deals into jumbo range. P&L loans can go jumbo — that's a real advantage here.
This market moves fast. Self-employed buyers who can't show clean tax income lose deals to W-2 buyers. A P&L loan closes that gap.
A licensed, third-party CPA must prepare it. Your in-house bookkeeper doesn't qualify.
Yes. Many non-QM lenders go well above conforming limits. Loan amounts depend on your income and credit profile.
Lenders use the net income figure on the P&L. Some lenders use gross revenue with an expense ratio applied.
Bank statement loans analyze actual deposits. P&L loans use your CPA's income summary — fewer documents, more lender discretion.
Most lenders require 680 or higher. Stronger scores get better rates and lower down payment requirements.
Yes. Non-QM loans price above conventional. Rates vary by borrower profile and market conditions.
Profit & Loss Statement Loans in Newport Beach