Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper or self-prepared statements are not accepted by lenders.

Question 2

Can I use a P&L loan for a Big Bear vacation rental?

Accepted Answer

Yes, but investment property guidelines apply. Expect a higher down payment and tighter rate than a primary residence.

Question 3

Do P&L loans require tax returns?

Accepted Answer

No. That's the point. The P&L replaces tax returns as the primary income verification document.

Question 4

How long does my business need to be operating?

Accepted Answer

Most lenders require 2 years of self-employment history. Some non-QM lenders accept 1 year with strong compensating factors.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM products carry a rate premium. Rates vary by borrower profile and market conditions.

P&L Loans for Self-Employed Buyers in Big Bear Lake