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Riverside has a strong base of small business owners, contractors, and sole proprietors. Traditional loan programs routinely reject these borrowers despite solid income.
P&L loans fill that gap. A CPA-prepared profit and loss statement replaces the tax returns lenders normally require.
Typically 680+
Min Credit Score
CPA-Prepared P&L
Income Document
10-20%
Min Down Payment
12 or 24 months
P&L Period
Non-QM
Loan Category
Your CPA prepares a 12- or 24-month P&L statement. Lenders use that to calculate your qualifying income — not your Schedule C.
Credit requirements vary by lender. Most want a 680 or higher. Down payments typically start at 10-20% depending on the loan size.
P&L loans are non-QM products. Big retail banks rarely offer them. You need a broker with access to wholesale non-QM lenders.
We work with 200+ wholesale lenders, including dedicated non-QM shops. That gives us real options when one lender's P&L guidelines don't fit your business structure.
The P&L has to be credible. Lenders flag statements that show income wildly inconsistent with your bank deposits. Your CPA needs to know what they're preparing this for.
Some borrowers qualify better with bank statement loans instead. If your P&L shows low net income due to write-offs, 12 months of deposits might tell a stronger story.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use your accountant's figures. Each works better in different situations.
1099 loans work well for independent contractors with clean 1099 income. DSCR loans skip income verification entirely if you're buying a rental property.
Riverside's economy includes logistics, healthcare, and a dense population of independent business owners. Many run operations that look messy on a tax return but show real income on a P&L.
The Inland Empire market is more affordable than coastal California. That can make P&L loans workable here — borrowers need to finance less, which helps with down payment and reserve requirements.
A licensed CPA or tax professional must prepare it. Lenders won't accept a self-prepared document.
Some lenders allow 10% down on P&L loans. It depends on your credit score and the loan amount.
Yes. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.
Most lenders want a statement dated within 60-90 days of closing. Your CPA should plan for that timeline.
That's a problem. If heavy write-offs reduce your net income, a bank statement loan may qualify you for more.
P&L loans require documented income from a CPA. Stated income loans — mostly illegal now — required no verification.
Profit & Loss Statement Loans in Riverside