Question 1

How recent does my P&L statement need to be?

Accepted Answer

Most lenders want a year-to-date P&L no older than 90 days. Some accept 120 days if you provide recent bank statements showing continued deposits.

Question 2

Can I use my bookkeeper instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA to sign the P&L statement. Bookkeepers and EAs don't meet the credential requirement for these programs.

Question 3

What if my business is less than two years old?

Accepted Answer

You typically need 24 months of self-employment history. Some lenders accept gaps if you worked in the same industry as a W-2 employee before starting your business.

Question 4

Do I need a business license for P&L loans?

Accepted Answer

Usually yes. Lenders verify your business exists through licenses, tax ID numbers, or corporate filings. Casual self-employment without formal structure rarely works.

Question 5

How do rates compare to conventional loans?

Accepted Answer

Expect 1-3% higher than conforming rates. Exact pricing depends on credit, down payment, and loan amount. Rates vary by borrower profile and market conditions.

Question 6

Can I combine P&L income with my spouse's W-2?

Accepted Answer

Yes. If your spouse has W-2 income, lenders combine it with your P&L income. This lowers risk and often improves your rate slightly.

P&L Statement Loans in Foster City: Finance Your Home Using Business Income