Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders won't accept statements from bookkeepers or tax preparers without a CPA license.

Question 2

Can I use a P&L loan to buy in Highland?

Accepted Answer

Yes. P&L loans work for purchases and refinances in Highland. Property type and loan amount affect which lenders will participate.

Question 3

How is income calculated from a P&L?

Accepted Answer

Lenders take the net profit shown on your P&L and divide by the number of months covered. That monthly figure becomes your qualifying income.

Question 4

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

Accepted Answer

Most non-QM lenders require 680 or higher. Some programs go lower, but rates increase significantly below that threshold.

Question 5

Is a P&L loan more expensive than a conventional loan?

Accepted Answer

Yes. Non-QM rates run higher than conventional. The trade-off is qualifying when tax returns don't show enough income. Rates vary by borrower profile and market conditions.

Question 6

Can I use a P&L loan if my business is new?

Accepted Answer

Most lenders want at least two years of self-employment history. A new business rarely meets non-QM income seasoning requirements.

P&L Loans for Self-Employed Borrowers in Highland, CA