Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare and sign it. A self-prepared P&L won't be accepted by any serious non-QM lender.

Question 2

Can I use a P&L loan to buy in Montclair with bad credit?

Accepted Answer

Most P&L lenders require 680+. Below that, options narrow fast — bank statement loans may have more flexibility at lower scores.

Question 3

Do P&L loans cost more than conventional loans?

Accepted Answer

Yes. Non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 4

How recent does my P&L need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of application. Stale statements get declined quickly — plan ahead.

Question 5

Can I refinance in Montclair using a P&L loan?

Accepted Answer

Yes. P&L loans work for both purchase and refinance. Cash-out refinances are also available through select non-QM lenders.

Question 6

What if my P&L and bank statements don't match?

Accepted Answer

That's a red flag for underwriters. Significant gaps between the two can reduce your qualifying income or kill the deal.

P&L Loans for Self-Employed Borrowers in Montclair