Question 1

Does my CPA need special licensing for P&L loans?

Accepted Answer

Your CPA must hold an active license and prepare the statement on letterhead. Lenders verify licensing through state databases before accepting the P&L.

Question 2

Can I use P&L loans for investment properties in Barstow?

Accepted Answer

Yes, though some lenders restrict P&L programs to primary residences. DSCR loans often work better for pure investment purchases since they ignore personal income entirely.

Question 3

How do lenders calculate income from my P&L statement?

Accepted Answer

Most average your net profit over 12-24 months. Some add back one-time expenses or depreciation depending on the lender's guidelines and your business structure.

Question 4

What if my P&L shows declining profit year-over-year?

Accepted Answer

Declining profits trigger underwriter scrutiny. You'll need a strong explanation—seasonal business cycles, major equipment purchases, or market shifts that won't continue.

Question 5

Are P&L loan rates negotiable in Barstow?

Accepted Answer

Rates vary by borrower profile and market conditions. Stronger credit, larger down payments, and clean P&L presentation improve pricing across all non-QM programs.

P&L Statement Loans in Barstow: Income Verification for Self-Employed Borrowers