Question 1

What's the difference between P&L loans and bank statement loans in Rancho Santa Margarita?

Accepted Answer

P&L loans use CPA-prepared financial statements while bank statement loans use deposit history. P&L loans often work better for businesses with complex finances or multiple accounts.

Question 2

How long must my business operate before qualifying for a P&L Statement Loan?

Accepted Answer

Most lenders require at least 12 months of business operation. Some programs accept newer businesses with strong cash reserves and industry experience.

Question 3

Can I use a P&L Statement Loan for investment property in Rancho Santa Margarita?

Accepted Answer

Yes, these loans work for both primary residences and investment properties. Investment properties typically require larger down payments of 20% to 25%.

Question 4

Does my CPA need special certification to prepare the P&L statement?

Accepted Answer

Your CPA must be licensed and in good standing. They'll need to sign and certify the P&L statement according to lender requirements.

Question 5

What interest rates can I expect on a Profit & Loss Statement Loan in Orange County?

Accepted Answer

Rates vary by borrower profile and market conditions. Expect rates slightly higher than conventional mortgages, reflecting the flexible documentation requirements.

Profit & Loss Statement Loans in Rancho Santa Margarita - Self-Employed Home Financing