Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax preparer must prepare and sign it. Self-prepared statements are rejected by virtually every lender.

Question 2

Can I use a P&L loan to buy a short-term rental in Twentynine Palms?

Accepted Answer

Yes. If you're self-employed and own the rental as a primary or investment property, a P&L loan can work. DSCR loans are another option for pure investment properties.

Question 3

How recent does the P&L need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of application. A stale document will stall your file in underwriting.

Question 4

Do P&L loans have higher rates than conventional loans?

Accepted Answer

Yes. Non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.

Question 5

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

Accepted Answer

Most lenders start at 620. A 680 or higher gets you significantly better pricing and more lender options.

Question 6

Can I use a P&L loan for a refinance in San Bernardino County?

Accepted Answer

Yes. Both purchase and refinance transactions are eligible. Your CPA's P&L still needs to reflect current business income.

P&L Loans for Self-Employed Borrowers in Twentynine Palms