Question 1

How recent must my P&L statements be?

Accepted Answer

Most lenders require statements no more than 90 days old at closing. Your CPA should prepare updated statements quarterly to maintain current documentation throughout your home search.

Question 2

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

Accepted Answer

Yes, though terms differ from primary residence purchases. Investment properties typically require 20-25% down and demonstrate both personal income and property cash flow potential.

Question 3

What if my business is less than two years old?

Accepted Answer

Some lenders accept one year of self-employment if you have prior work history in the same industry. This shows transferable expertise and income stability despite recent business formation.

Question 4

Do all CPAs qualify to prepare these statements?

Accepted Answer

Your CPA must hold an active license in good standing. Some lenders maintain approved CPA lists or require specific statement formats, so verify requirements before preparation begins.

Question 5

How do lenders calculate my qualifying income from P&L statements?

Accepted Answer

Lenders typically use your net profit before depreciation and other non-cash expenses. They may average multiple months or years depending on income consistency and program guidelines.

Profit & Loss Statement Loans in Belmont: Flexible Financing for Self-Employed Professionals