Question 1

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

Accepted Answer

Most lenders want statements within 90 days of closing. Your CPA needs to prepare an updated P&L if your last one is older than three months.

Question 2

Can I use P&L income if I only own part of the business?

Accepted Answer

Yes, but income is prorated by your ownership percentage. A 50% owner qualifies using half the business profit shown on the P&L.

Question 3

What if my business lost money one year but made money the next?

Accepted Answer

Lenders average both years, which reduces qualifying income. Some programs allow using just the profitable year if you can document why the loss was one-time.

Question 4

Do I need business tax returns in addition to the P&L?

Accepted Answer

Most lenders want both. The P&L shows current income, while tax returns verify business history and legitimacy over multiple years.

Question 5

Can I combine P&L income with W-2 income from a separate job?

Accepted Answer

Yes. Lenders will add W-2 income to your P&L business income when calculating total qualifying income for the loan.

Profit & Loss Statement Loans in Menlo Park: Qualify Using Your Business Income