Question 1

Does my CPA have to prepare the P&L, or can I do it myself?

Accepted Answer

It must be CPA-prepared and signed. Self-prepared statements are rejected by every non-QM lender I work with.

Question 2

Can I use just 12 months of P&L history?

Accepted Answer

Yes, most lenders accept 12 months. Some require 24 months for better pricing or higher loan amounts.

Question 3

Will lenders also ask for my tax returns?

Accepted Answer

Some lenders require them to verify business existence. Others skip them entirely. It depends on the lender's overlay.

Question 4

How does a P&L loan differ from a bank statement loan?

Accepted Answer

Bank statement loans analyze actual deposits. P&L loans rely on your CPA's income summary. Both qualify self-employed borrowers differently.

Question 5

What credit score do I need for a P&L loan in Vista?

Accepted Answer

Most lenders start at 680. Some non-QM programs go to 660 with compensating factors like larger down payment or strong reserves.

Question 6

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM programs carry rate premiums over conventional loans. Rates vary by borrower profile and market conditions.

P&L Loans for Self-Employed Buyers in Vista