Question 1

How much income can I qualify with on P&L statements?

Accepted Answer

Lenders typically average 12-24 months of net profit from your P&L. Some use the most recent year if it's higher. DTI limits usually max at 50%.

Question 2

Does my CPA need special credentials for this?

Accepted Answer

Your CPA must hold an active license and be independent from you. They can't be a family member or business partner. Most lenders verify licensing directly.

Question 3

Can I use P&L loans for investment properties?

Accepted Answer

Yes, but DSCR loans are simpler for rentals since they ignore your P&L entirely. P&L loans make more sense for primary homes or second residences.

Question 4

What if my business income dropped last year?

Accepted Answer

Some lenders accept declining income with a strong explanation. Others average multiple years. We shop for lenders who fit your income trend.

Question 5

How do rates compare to conventional loans?

Accepted Answer

P&L rates typically run 1-2% higher than conventional. Exact pricing depends on credit score, down payment, and loan size. Rates vary by borrower profile and market conditions.

Question 6

Can I count cryptocurrency holdings as reserves?

Accepted Answer

Some non-QM lenders now accept verified crypto assets for reserves. This is newer and not all lenders offer it. We can identify which programs allow this.

P&L Statement Loans for San Mateo's Self-Employed Borrowers