Question 1

Does my CPA need special credentials to prepare the P&L?

Accepted Answer

Your CPA needs an active state license. Lenders verify the license number and require a signed engagement letter showing they prepared your financials professionally.

Question 2

Can I use a P&L loan for investment properties in Pismo Beach?

Accepted Answer

Yes, but most lenders require 20-25% down for investment properties versus 15-20% for primary residences. The property's income doesn't factor into your personal P&L qualification.

Question 3

What if my business is only 10 months old?

Accepted Answer

Most P&L programs require 12 months minimum operating history. A few niche lenders accept 6-9 months with 25%+ down and strong reserves.

Question 4

How do lenders calculate my income from the P&L statement?

Accepted Answer

They take your net business income from the P&L bottom line and may add back non-cash expenses like depreciation. Each lender uses slightly different formulas.

Question 5

Do I need to explain business expenses on my P&L?

Accepted Answer

Only if expenses look unusual. A restaurant showing $80K monthly revenue and $79K expenses will trigger questions. Normal operating margins don't require additional documentation.

Question 6

Can I combine P&L income with W-2 income from my spouse?

Accepted Answer

Yes. Your P&L income combines with your spouse's W-2 income for joint applications. The W-2 income follows standard verification while yours uses the P&L.

P&L Statement Loans in Pismo Beach — Financing for Self-Employed Borrowers