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San Diego has a dense concentration of self-employed borrowers — contractors, consultants, and business owners who don't fit the W-2 mold.
A P&L loan uses a CPA-prepared profit and loss statement instead of tax returns to verify your income. That single shift opens doors most lenders keep shut.
CPA-Prepared P&L
Income Verification
620–680
Min Credit Score
10–20%
Down Payment
12–24 Months
P&L Period Required
3–6 Months
Reserves Required
Profit & Loss Statement Loans in San Diego
Most lenders want a 12- to 24-month P&L statement prepared and signed by a licensed CPA. Your accountant can't just pull a QuickBooks report — it needs to be a formal document.
Credit score minimums typically start around 620 to 680 depending on the lender. Down payments usually run 10% to 20%, and reserves of 3 to 6 months are common. Rates vary by borrower profile and market conditions.
Local decision guide
Use this guide to connect profit & loss statement loans eligibility, lender expectations, and local market factors before comparing payment options in San Diego.
San Diego has a dense concentration of self-employed borrowers — contractors, consultants, and business owners who don't fit the W-2 mold.
A P&L loan uses a CPA-prepared profit and loss statement instead of tax returns to verify your income. That single shift opens doors most lenders keep shut.
Most lenders want a 12- to 24-month P&L statement prepared and signed by a licensed CPA. Your accountant can't just pull a QuickBooks report — it needs to be a formal document.
P&L loans are non-QM products — meaning they don't conform to Fannie Mae or Freddie Mac guidelines. Retail banks rarely offer them. You need a broker with access to wholesale non-QM lenders.
At SRK CAPITAL, we work with 200+ wholesale lenders. Several specialize in P&L programs for self-employed borrowers. That reach matters when one lender's guidelines won't fit your situation.
The most common mistake I see: borrowers bring a P&L their bookkeeper prepared. Most lenders won't accept it. Get a CPA to prepare and sign the document before you apply.
Self-employed borrowers often write off a lot, which tanks their taxable income. P&L loans let lenders look at your actual business income — not what your returns show after deductions. That's the real advantage here.
Bank Statement Loans use 12 to 24 months of deposits to calculate income. P&L loans use your CPA's summary instead. If your deposits are inconsistent, P&L can show a cleaner income picture.
1099 loans work if you get 1099s from clients. Asset Depletion works if you have significant savings but low income. P&L fits best when your business is profitable and your CPA can document it clearly.
San Diego's economy runs on defense contractors, biotech, tourism, and real estate — sectors full of self-employed workers and small business owners. P&L loans were built for exactly this borrower profile.
Property prices in San Diego County are high. A strong P&L showing solid net income helps you qualify for larger loan amounts than tax returns alone would support. That matters in a market like this one.
Your CPA must prepare and sign it. Self-prepared P&L statements are rejected by almost every non-QM lender.
Most lenders want a P&L covering the last 12 to 24 months. Some require it to be dated within 60 days of your application.
Yes — that's exactly what this loan is for. Lenders use your gross profit or net income from the P&L, not your taxable income.
Yes, typically. Non-QM loans carry higher rates than Fannie/Freddie products. Rates vary by borrower profile and market conditions.
It depends on what the P&L shows. Lenders want to see stable or growing income. One bad year can hurt your qualifying income significantly.
Some lenders allow it, but DSCR loans are usually a cleaner fit for investment properties. Ask us which program fits your deal.