Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. Lenders won't accept self-prepared statements.

Question 2

Can I use one year of P&L income?

Accepted Answer

Some lenders allow 12-month P&L. Others require 24 months. It depends on the lender's guidelines.

Question 3

Do P&L loans work for Canyon Lake's gated HOA properties?

Accepted Answer

Yes, but lenders review HOA financial health. Make sure the HOA has adequate reserves.

Question 4

How are P&L loans different from bank statement loans?

Accepted Answer

P&L loans use net income from a CPA statement. Bank statement loans use deposit averages. Each can produce different qualifying income.

Question 5

What credit score do I need for a P&L loan in Riverside County?

Accepted Answer

Most non-QM lenders want 680 or higher. Some go lower but raise the rate. Rates vary by borrower profile and market conditions.

Question 6

Are P&L loan rates higher than conventional rates?

Accepted Answer

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

P&L Loans for Self-Employed Buyers in Canyon Lake