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Chino Hills draws a lot of self-employed borrowers. Business owners, contractors, and consultants live here — and most of them can't qualify with a W-2.
P&L loans fill that gap. Your CPA prepares a profit and loss statement, and lenders use that to verify income instead of tax returns.
640+
Min Credit Score
12 or 24 months
P&L Period
10–20%
Down Payment
Non-QM
Loan Type
Most lenders want a 12- or 24-month P&L prepared by a licensed CPA. The statement must show consistent income — not one good quarter.
Credit score minimums typically start at 640. Expect down payment requirements of 10–20% depending on the lender and loan size.
Not every lender offers P&L loans. These are non-QM products — meaning they fall outside standard government guidelines and are priced differently.
HousingWire noted Pennymac TPO recently expanded into non-QM products. More institutional players entering the space means more competition and more options for self-employed borrowers.
The biggest mistake I see: borrowers show up with a P&L their bookkeeper prepared. Lenders reject it. It must come from a CPA with a license number.
P&L loans also price based on how clean the statement looks. High write-offs might lower your tax bill — but they'll hurt your qualifying income here.
Bank statement loans use 12–24 months of deposits to calculate income. P&L loans use your CPA's summary instead. Both are non-QM. Neither uses tax returns.
If your deposits are messy or your business has high overhead, a P&L loan may produce a higher qualifying income than bank statements would.
Chino Hills sits in San Bernardino County, which borders LA and Orange County. Many business owners here run companies in those adjacent markets.
That means higher income potential — but also more complex financials. A P&L loan rewards borrowers whose CPA can document earnings clearly.
A licensed CPA must prepare and sign it. Bookkeeper-prepared statements are rejected by most non-QM lenders.
It depends on the lender. Some accept 12 months. Others require 24 for stronger income documentation.
Yes. Non-QM loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.
Yes, for purchase or refinance. Your qualifying income is based on the P&L, not your tax returns.
That's exactly who this loan is for. The P&L reflects actual business performance, not what your tax strategy shows.
A P&L uses your CPA's income summary. Bank statement loans calculate income from raw deposit history. Both skip tax returns.
Profit & Loss Statement Loans in Chino Hills