Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare it. Most lenders won't accept statements from bookkeepers or prepared by the borrower.

Question 2

Do I need to show tax returns with a P&L loan?

Accepted Answer

No. That's the point of this program. The P&L replaces tax returns as the primary income document.

Question 3

How long does my business need to be operating?

Accepted Answer

Most lenders require at least two years. Some will consider 12 months with strong income documentation.

Question 4

Can I use a P&L loan for a jumbo purchase in Poway?

Accepted Answer

Yes. Several non-QM lenders offer P&L programs with loan amounts above conforming limits. Down payment requirements are higher.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, typically. Non-QM loans carry more risk for lenders. Rates vary by borrower profile and market conditions.

Question 6

What if my P&L shows a loss in one year?

Accepted Answer

That's a problem. Lenders need to see profitability. A single loss year can disqualify you or require 24 months to average it out.

P&L Statement Loans for Self-Employed Buyers in Poway