Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper-prepared statements are rejected by most lenders.

Question 2

Can I use one year of P&L instead of two?

Accepted Answer

Some lenders accept a 12-month P&L. Others require 24 months. It depends on the program and your credit profile.

Question 3

Do P&L loans have higher rates than conventional loans?

Accepted Answer

Yes. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 4

Can I buy in Lincoln with a P&L loan if my taxes show a loss?

Accepted Answer

Possibly. The P&L reflects your actual income, not your tax return. But lenders still evaluate overall financial strength.

Question 5

How long does my business need to be operating?

Accepted Answer

Most lenders require at least 2 years of self-employment history. Some will consider 1 year with strong compensating factors.

P&L Statement Loans for Lincoln's Self-Employed Buyers