Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. A borrower-prepared P&L will not be accepted by any lender.

Question 2

Can I use a P&L loan to buy in Hesperia with 10% down?

Accepted Answer

Some lenders allow 10% down on P&L loans. Expect a higher rate at that down payment level. Rates vary by borrower profile and market conditions.

Question 3

Do I need two years of self-employment history?

Accepted Answer

Yes. Most P&L lenders require 24 months of self-employment. One year is rarely enough to qualify.

Question 4

What credit score do I need for a P&L loan?

Accepted Answer

Most lenders start at 620. A score above 700 gets you meaningfully better pricing on non-QM products.

Question 5

Will the lender also look at my tax returns?

Accepted Answer

Some lenders request returns to check for unpaid taxes or red flags. They won't use them to calculate your income.

Question 6

How does a P&L loan differ from a bank statement loan?

Accepted Answer

Bank statement loans average your deposits. P&L loans use your CPA's income calculation. Each works better in different situations.

P&L Loans for Self-Employed Buyers in Hesperia