Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. A self-prepared P&L will be rejected by virtually every non-QM lender offering this program.

Question 2

Can I use just 12 months of P&L income?

Accepted Answer

Some lenders allow 12 months, but 24 months gets better rates and more program options. Shorter history means more lender risk — and higher pricing.

Question 3

Do I need to show tax returns with a P&L loan?

Accepted Answer

No — that's the point of this product. The P&L replaces tax returns as the income verification document.

Question 4

How is my qualifying income calculated?

Accepted Answer

Lenders use the net income shown on your P&L, sometimes averaged over 12 or 24 months. Some lenders apply an expense factor adjustment to gross revenue instead.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM products carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions — shop across lenders to minimize the gap.

Question 6

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders want at least two years of self-employment history. Some allow one year with strong compensating factors like a large down payment or high credit score.

P&L Loans for Self-Employed Buyers in Elk Grove