Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA or enrolled agent must prepare and sign it. Bookkeeper-prepared or self-prepared statements are not accepted by lenders.

Question 2

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

Accepted Answer

Some lenders allow 10% down on P&L loans. You'll need strong credit and solid income documentation to qualify at that level.

Question 3

How is income calculated from a P&L statement?

Accepted Answer

Lenders typically use net income shown on the P&L. Some programs apply an expense factor to gross revenue instead — ask which method benefits your situation.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM products like P&L loans carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 5

Do I need two years of self-employment history?

Accepted Answer

Most lenders require at least two years of self-employment. Some accept 12 months with strong compensating factors like a high credit score or larger down payment.

Question 6

Can I use a P&L loan to refinance, not just purchase?

Accepted Answer

Yes. P&L loans work for cash-out refinances and rate-term refinances. Lenders apply the same income verification standards regardless of transaction type.

P&L Loans for Self-Employed Buyers in Lathrop