Question 1

Does the P&L have to be CPA-prepared?

Accepted Answer

Yes. Lenders require a licensed CPA or tax professional to prepare it. Self-prepared statements are not accepted.

Question 2

Can I use just one year of P&L?

Accepted Answer

Some lenders accept a 12-month P&L. Others require 24 months. It depends on the lender and your business history.

Question 3

Do I need to show business bank statements too?

Accepted Answer

Some lenders require supporting bank statements alongside the P&L. Others accept the P&L alone. Programs vary.

Question 4

What credit score do I need in Victorville?

Accepted Answer

Most P&L programs start at 620. Better credit scores open lower rates and more lender options. Rates vary by borrower profile and market conditions.

Question 5

How is qualifying income calculated from my P&L?

Accepted Answer

Lenders typically use net profit from the P&L, sometimes with add-backs for depreciation. Your CPA should understand this before drafting the statement.

Question 6

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

Accepted Answer

Yes. Non-QM rates run higher than conventional. The tradeoff is qualifying without tax returns or W-2s. Rates vary by borrower profile and market conditions.

P&L Loans for Victorville's Self-Employed Borrowers