Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA or tax professional must prepare it. Lenders will not accept self-prepared documents.

Question 2

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

Accepted Answer

Yes. Confirm the lender lends on rural properties in San Bernardino County. Most wholesale non-QM lenders do.

Question 3

How long does my business need to be operating?

Accepted Answer

Most lenders want at least 2 years of self-employment history. Some accept 12 months with strong documentation.

Question 4

Are P&L loans more expensive than conventional loans?

Accepted Answer

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

Question 5

What if my P&L shows low profit?

Accepted Answer

Lenders qualify you on net profit shown. Low profit means lower qualifying income — the same problem you'd face with tax returns.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes, many borrowers use P&L loans as a bridge. Once your tax returns show stronger income, conventional rates become available.

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