Question 1

What if my P&L shows a loss this year?

Accepted Answer

Lenders average two years of P&L statements. One down year won't disqualify you if the other year shows strong profit. Some programs weight recent performance more heavily.

Question 2

Can I use a P&L loan for an investment property in San Luis Obispo?

Accepted Answer

Yes, but down payments increase to 20-25%. DSCR loans often work better for pure investment purchases because they ignore personal income entirely.

Question 3

Does my CPA need to be local to San Luis Obispo County?

Accepted Answer

No. Your CPA must be licensed in any U.S. state. They just need to prepare the P&L on their letterhead with their license number.

Question 4

How long does P&L loan approval take?

Accepted Answer

Plan for 3-4 weeks from application to closing. The CPA letter and business verification add a few days compared to conventional loans.

Question 5

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

Accepted Answer

Yes. This strengthens your application. Lenders use your P&L profit plus their W-2 gross income to calculate total qualifying income.

P&L Statement Loans in San Luis Obispo: Smart Financing for Business Owners