Question 1

What if my business is only 18 months old?

Accepted Answer

Some lenders accept 12 months of P&L with strong reserves and 680+ credit. Newer businesses face higher rates and larger down payments but can still qualify.

Question 2

Can I use a bookkeeper instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA to prepare and certify the P&L statement. Bookkeeper-prepared financials don't meet underwriting standards for these programs.

Question 3

How do lenders verify the P&L is accurate?

Accepted Answer

They contact your CPA directly and may request business bank statements to cross-check revenue. Some require a CPA letter certifying the figures represent actual business activity.

Question 4

Does my business need to be profitable every month?

Accepted Answer

Not necessarily. Lenders average your net income over the P&L period. Seasonal businesses with strong profitable months offset slower periods in the calculation.

Question 5

What rates should I expect versus conventional loans?

Accepted Answer

Expect 1.5-3% higher than conforming rates. Your credit, down payment, and profit margins determine where you land within that range. Rates vary by borrower profile and market conditions.

P&L Statement Loans in Half Moon Bay: Income Verification for Self-Employed Borrowers