Question 1

Does my CPA need special certification for P&L loan approval?

Accepted Answer

Your CPA must hold an active state license. Some lenders require two years minimum experience, while others accept newly licensed CPAs if the business history is strong.

Question 2

Can I use P&L loans for investment properties in Atherton?

Accepted Answer

Yes, but DSCR loans usually work better for investment properties. They ignore your personal income and qualify based solely on the rental cash flow the property generates.

Question 3

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

Accepted Answer

Most use net profit before depreciation. Some average 12-24 months, others use the most recent year. Calculation method varies by lender and significantly affects your qualifying amount.

Question 4

What if my business shows a loss some months on the P&L?

Accepted Answer

Lenders average the full statement period. Occasional losses are fine if the annual or two-year average shows positive income. Consistent losses across all periods will disqualify you.

Question 5

Why would I choose P&L over bank statement loans in Atherton?

Accepted Answer

When your business expenses exceed your deposits. If you show $600k net income but only deposit $300k after paying vendors, the P&L shows higher qualifying income.

P&L Statement Loans for Atherton's High-Net-Worth Self-Employed Borrowers