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Coronado is one of the most expensive coastal markets in San Diego County. Buyers here rarely fit the W-2 borrower mold lenders love.
Many Coronado buyers are business owners, consultants, or investors. Their tax returns show far less income than they actually earn.
680+
Min Credit Score
CPA-Prepared P&L
Income Verification
10-20% Typical
Down Payment
12 or 24 Months
P&L Period
6-12 Months
Reserves Required
A CPA prepares a 12- or 24-month profit and loss statement. The lender uses that to calculate your qualifying income — not your Schedule C.
Most lenders want a 680+ credit score and 10-20% down. Reserves matter too. Expect lenders to ask for 6-12 months of liquid assets.
Banks don't offer P&L loans. These come exclusively from non-QM wholesale lenders. Rates are higher than conventional — that's the trade-off for flexible income docs.
Lender guidelines vary significantly on P&L loans. One lender may require 24 months; another accepts 12. Shopping matters here more than almost any other loan type.
The P&L has to be airtight. Lenders scrutinize these closely. A CPA who understands non-QM lending is worth finding before you apply.
Some borrowers do better with bank statement loans instead. If your business account deposits tell a stronger income story than your P&L, that may be the smarter path.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use your accountant's numbers instead. Each method produces a different qualifying income figure.
1099 loans work well for independent contractors paid by 1099. Asset depletion loans are better when you have significant savings but low business income. Know which tool fits your situation.
Coronado's price point pushes most purchases into jumbo territory. P&L loans can go jumbo — but lender appetite shrinks and requirements tighten above $2M.
The island's tight inventory means deals move fast. Getting fully pre-approved on a P&L loan before you search is not optional here. Sellers won't wait while you assemble CPA documents.
A licensed CPA or tax professional must prepare it. Self-prepared P&Ls are not accepted by non-QM lenders.
Some lenders allow 10% down on P&L loans. Expect stricter reserve requirements and a higher rate at that tier.
Lenders typically take your net profit shown on the P&L and average it over 12 or 24 months. Each lender applies their own formula.
Yes. Non-QM loans carry a rate premium for flexible documentation. Rates vary by borrower profile and market conditions.
Most lenders require your business to be at least 2 years old. Some allow 1 year with strong financials and compensating factors.
Yes, but condo approval has extra steps. Non-QM lenders still review the HOA and project approval status before committing.
Profit & Loss Statement Loans in Coronado