Loading
Burlingame sits in one of California's most expensive counties. Traditional W-2 income documentation doesn't work for many buyers here. Business owners and independent contractors need alternative paths to qualify.
P&L statement loans let you use CPA-prepared financials instead of tax returns. This matters when your business structure creates write-offs that reduce taxable income. You qualify based on net profit shown on your P&L, not what you report to the IRS.
You need at least 12 months of self-employment history. Most lenders require 24 months for stronger approval odds. Your CPA must prepare a signed P&L covering that period.
Credit scores typically start at 660, though some programs accept 640 with compensating factors. Down payments run 15-20% for owner-occupied properties. Expect higher reserves than conventional loans — usually six months of payments in the bank.
We work with 200+ wholesale lenders across the non-QM space. Not all offer P&L programs, and those that do have different underwriting overlays. Some accept single-year P&Ls. Others require two years and cross-reference against bank deposits.
Rate pricing varies based on your CPA's credentials and how your P&L trends. Stable or growing profit gets better terms than declining income. Lenders want to see the CPA is licensed and has prepared your statements for at least one full year.
Most self-employed borrowers try bank statement loans first because they're more common. P&L loans make sense when your business has irregular deposits or you run multiple revenue streams through one account. Clean P&L documentation can be easier to underwrite than 24 months of statements.
Here's what kills deals: CPAs who won't sign off on projections or borrowers who can't explain income gaps. If your business is seasonal, make sure your CPA notes that. Underwriters will flag any discrepancy between your P&L income and bank deposits.
Bank statement loans average your deposits over 12-24 months. P&L loans use net profit after expenses. If you have high business costs but strong profit margins, P&L documentation shows your true earning power. If you deposit cash inconsistently, bank statements create problems P&Ls avoid.
Asset depletion loans make sense when you have significant liquid assets but minimal business income. DSCR loans work for investment properties where rent covers the mortgage. P&L loans are your path when you need primary residence financing based on self-employment income.
Burlingame properties demand strong income documentation. Even with a P&L program, you're borrowing against expensive real estate. Lenders scrutinize profit margins and business stability more carefully here than in lower-cost markets.
San Mateo County has a heavy concentration of tech consultants, fractional executives, and business owners. Many earn well but structure income to minimize taxes. That's exactly who P&L programs serve. Your loan amount will depend on profit shown, not revenue run through your business.
No. The P&L must come from a licensed CPA who signs and dates it. Self-prepared statements don't meet underwriting standards for income verification.
Some lenders accept 12 months of history with strong compensating factors like high reserves or larger down payment. Two years is standard but not universal.
Yes. Expect rates 1-3% above conventional pricing as of February 2026. Non-QM programs carry higher risk for lenders, which shows up in rate and fee structure.
Most lenders allow this. You'll use tax returns for W-2 income and CPA-prepared P&L for self-employment income. Both income sources get underwritten together.
Underwriters will flag this. Your CPA needs to explain timing differences like accounts receivable or deferred deposits. Major gaps kill deals.
Profit & Loss Statement Loans in Burlingame