Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders won't accept self-prepared statements.

Question 2

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

Accepted Answer

Yes. P&L loans work for primary, second home, and investment purchases. STR buyers use them regularly.

Question 3

How much do P&L loans cost compared to conventional?

Accepted Answer

Rates run higher than conventional. It's the trade-off for flexible income documentation. Rates vary by borrower profile and market conditions.

Question 4

Do I need two years of self-employment history?

Accepted Answer

Most lenders require two years. Some will approve with 12 months if the business is established and income is strong.

Question 5

What's the minimum down payment for a P&L loan in California?

Accepted Answer

Typically 10–20% depending on the lender and loan size. Lower credit scores usually require more down.

Question 6

Is a P&L loan the same as a bank statement loan?

Accepted Answer

No. Bank statement loans calculate income from deposits. P&L loans use net profit from a CPA statement. Both are non-QM products.

P&L Loans for Self-Employed Buyers in Yucca Valley