Question 1

Can I use a P&L I prepare myself?

Accepted Answer

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.

Question 2

What if my business is only 18 months old?

Accepted Answer

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.

Question 3

Do P&L loans have higher rates than conventional?

Accepted Answer

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.

Question 4

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

Accepted Answer

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.

Question 5

What if my P&L shows income but my bank statements don't match?

Accepted Answer

Underwriters will flag this. Your CPA needs to explain timing differences like accounts receivable or deferred deposits. Major gaps kill deals.

P&L Statement Loans in Burlingame — Income Verification for Self-Employed Buyers