Question 1

Does my accountant have to be a CPA?

Accepted Answer

Yes — most lenders require a licensed CPA or enrolled agent. A bookkeeper or tax preparer without credentials won't satisfy underwriting.

Question 2

Can I use a P&L loan to buy in Santee with 10% down?

Accepted Answer

Some lenders allow 10% down on P&L loans. You'll need stronger credit and a clean P&L to qualify at that down payment level.

Question 3

How is income calculated from a P&L statement?

Accepted Answer

Lenders typically use the net income figure from the P&L. Some lenders use gross revenue with an expense ratio — it depends on the program.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 5

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

Accepted Answer

A losing year is a problem. Most lenders want consistent or growing profit. A 24-month P&L with a strong recent year can sometimes offset a weaker prior year.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use P&L loans to purchase, then refinance into conventional once they can show two years of tax returns.

P&L Loans for Self-Employed Buyers in Santee