Question 1

Do I need a CPA or can I prepare the P&L myself?

Accepted Answer

It must be CPA-prepared and signed. Self-prepared statements are not accepted by any P&L loan lender.

Question 2

How long do I need to be self-employed?

Accepted Answer

Most lenders want at least two years of self-employment history. Some will go to one year with strong financials.

Question 3

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

Accepted Answer

Some lenders allow 10% down on P&L loans. Expect stricter terms the lower your down payment goes.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes — non-QM loans price at a premium over conventional. Rates vary by borrower profile and market conditions.

Question 5

What if my P&L shows lower profit in one year?

Accepted Answer

Lenders typically average two years of profit. One down year matters less if the trend is positive overall.

P&L Statement Loans for Manteca's Self-Employed Buyers