Question 1

Does my CPA need special credentials for P&L statement loans?

Accepted Answer

Your CPA must hold an active license and cannot be related to you. Lenders verify credentials directly and may require additional documentation about the CPA's practice and qualifications.

Question 2

Can I use my own bookkeeper instead of a CPA?

Accepted Answer

No, lenders require licensed CPAs to prepare P&L statements. Bookkeeper-prepared statements don't meet underwriting requirements, even if accurate, because they lack professional certification.

Question 3

How far back do my P&L statements need to go?

Accepted Answer

Most lenders require 12-24 months of statements. Year-to-date plus previous year is common. Some programs accept one year if you've been self-employed longer.

Question 4

What if my business shows a loss in one quarter?

Accepted Answer

One loss quarter doesn't automatically disqualify you if overall trend shows profitability. Lenders evaluate average income and business trajectory, not individual periods in isolation.

Question 5

Are P&L loan rates higher than conventional mortgages?

Accepted Answer

Yes, expect rates 1-3% above conventional loans due to non-QM classification. Rates vary by borrower profile and market conditions based on credit, down payment, and business strength.

P&L Statement Loans in Daly City: Income Verification for Self-Employed Borrowers