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Escondido has a strong base of small business owners, contractors, and self-employed professionals. Standard tax returns often don't reflect what these borrowers actually earn.
A P&L loan uses a CPA-prepared profit and loss statement instead of tax returns. That one shift opens the door for borrowers who'd otherwise get denied.
680 (typical)
Min Credit Score
CPA-Prepared P&L
Income Doc
10-20% typical
Down Payment
12 or 24 months
P&L Period
Non-QM
Loan Type
Your CPA prepares a 12- or 24-month P&L statement. Lenders use that income figure — not your Schedule C — to qualify you.
Most lenders want a 680+ credit score and at least 10-20% down. Loan amounts vary, but non-QM lenders routinely go above conventional limits.
Big retail banks won't touch P&L loans. These are non-QM products, and only specialty wholesale lenders offer them.
We work with 200+ wholesale lenders at SRK CAPITAL. Several specialize in non-QM programs built for exactly this borrower profile.
The most common mistake I see: borrowers bring a P&L their bookkeeper made in Excel. Lenders reject it. The CPA signature is non-negotiable.
P&L loans also carry higher rates than conventional loans. That's the tradeoff for flexible income docs. Rate varies by borrower profile and market conditions.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use a single CPA document. Both work — the right choice depends on how your income flows.
If your business has high revenue but also high expenses, bank statements may show more income than a P&L. We run both scenarios before you commit.
Escondido sits in inland San Diego County. Property values are lower than coastal areas, but still require solid loan amounts for most purchases.
The city has a high concentration of trades, service businesses, and independent operators. P&L loans were designed for exactly this borrower type.
A licensed CPA must prepare and sign it. Lenders will not accept a P&L from a bookkeeper or self-prepared document.
Some lenders accept 12 months. Others require 24. We identify which programs fit your situation before you apply.
Yes. These loans work for both purchases and rate-term or cash-out refinances in San Diego County.
P&L loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.
Most lenders start at 680. Some non-QM programs allow lower scores, but rates increase as scores drop.
No. A bank statement loan uses deposit history. A P&L loan uses a CPA-prepared income statement. Both are non-QM options.
Profit & Loss Statement Loans in Escondido