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El Cajon has a strong base of small business owners and independent contractors. Conventional loans shut many of them out because tax returns show too little income.
A P&L loan solves that. Your CPA prepares a 12 or 24-month profit and loss statement. Lenders use that to qualify you instead of tax returns.
680 typical
Min Credit Score
10-20%
Down Payment
12 or 24 months
P&L Period
CPA-signed P&L
Income Doc
Non-QM
Loan Type
Profit & Loss Statement Loans in El Cajon
You need a CPA or licensed tax professional to prepare the P&L. A self-prepared statement won't work — lenders require a third-party signature.
Most lenders want a 680+ credit score and 10-20% down. Loan amounts can go well into jumbo territory depending on the lender.
Retail banks don't offer P&L loans. This product lives in the non-QM wholesale market. You need a broker with access to that shelf.
Guidelines vary a lot between lenders. One lender may require 24 months. Another accepts 12. Rate spreads between lenders can be wide on non-QM products.
The biggest issue we see: borrowers bring a P&L that doesn't match their bank deposits. Lenders cross-reference. The numbers need to hold up.
Get your CPA involved early. A well-prepared P&L can be the difference between qualifying at the income you need or coming up short.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use a CPA's summary instead. P&L loans can be faster to document.
1099 loans work if most of your income is reported on 1099s. If your income is harder to trace — cash-heavy business, mixed sources — the P&L is often cleaner.
El Cajon has a dense concentration of small business owners across retail, auto, and service industries. P&L loans are a natural fit for this borrower profile.
San Diego County home prices are high relative to the state average. P&L loans can reach loan amounts that cover mid-range and higher-priced properties here.
Yes. A self-prepared P&L is not accepted. The CPA must sign and provide their license number.
Yes. P&L loans are available for purchase and refinance in El Cajon. Loan amounts can cover most San Diego County price points.
Most P&L lenders require 10-20% down. Lower down payments mean tighter guidelines and higher rates. Rates vary by borrower profile and market conditions.
Most lenders start at 680. Some go lower, but expect stricter terms below that threshold.
Bank statement loans analyze your deposits directly. P&L loans use a CPA summary of business income. Each works better for different business structures.
Yes. Non-QM products carry a premium over conventional. The trade-off is qualification flexibility. Rates vary by borrower profile and market conditions.