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Lemon Grove sits in San Diego County — one of California's most competitive housing markets. Self-employed buyers here need income verification that matches how they actually earn money.
P&L loans use a CPA-prepared profit and loss statement instead of tax returns. That single shift opens the door for business owners who write off most of their income.
680+
Min Credit Score
CPA-Prepared P&L
Income Doc Type
10%
Min Down Payment
12–24 Months
P&L History Required
Your CPA prepares a 12- or 24-month P&L statement. Lenders use that to calculate qualifying income — not your Schedule C after deductions.
Most lenders want a 680+ credit score for P&L loans. Down payment requirements typically start at 10%, though 20% or more gets you better pricing. Rates vary by borrower profile and market conditions.
P&L loans are non-QM products. That means they don't follow Fannie Mae or Freddie Mac guidelines. Only specialty wholesale lenders and portfolio lenders offer them.
Not every broker has access to these programs. At SRK CAPITAL, we work with 200+ wholesale lenders — several of whom specialize in non-QM products for California's self-employed buyers.
The most common mistake I see: borrowers submit a P&L their bookkeeper prepared in QuickBooks. Most lenders reject that. It has to come from a licensed CPA.
P&L loan rates run higher than conventional rates. That's the tradeoff for skipping the tax return documentation. If you can qualify conventionally, do it. If your write-offs make that impossible, P&L is a real solution.
Bank statement loans are the closest alternative. Those use 12-24 months of deposits to calculate income. P&L loans can be faster to document if your CPA is already tracking your financials.
1099 loans work well for independent contractors. Asset depletion loans fit high-net-worth borrowers with large portfolios but limited income. P&L loans sit squarely in the middle — best for business owners with clean books.
Lemon Grove has a strong small-business and self-employed workforce. Contractors, consultants, and shop owners are common borrowers we see from this area.
San Diego County home prices mean you often need strong qualifying income to compete. P&L loans let self-employed buyers show their real earning power — not the taxable income that's left after deductions.
A licensed CPA must prepare it. Lender-accepted P&Ls cannot come from bookkeepers or accounting software alone.
Most programs require 12 or 24 months. Longer history typically gets you better loan terms.
Yes, some programs allow 10% down. Expect stricter credit requirements and higher rates at that tier.
Yes. Non-QM pricing reflects the added lender risk. Rates vary by borrower profile and market conditions.
Yes. Business entity structure matters. Your CPA and your broker both need to understand how income flows from your entity.
Depends on your records. P&L is faster with a strong CPA. Bank statements work better when deposit history is cleaner than your books.
Profit & Loss Statement Loans in Lemon Grove