Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Self-prepared or bookkeeper-prepared statements will not be accepted by lenders.

Question 2

Can I use one year of P&L history?

Accepted Answer

Yes, some lenders accept 12 months. Expect a slightly higher rate compared to a 24-month P&L.

Question 3

Do P&L loans have higher rates than conventional?

Accepted Answer

Yes — they carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

Question 4

What credit score do I need in Buellton?

Accepted Answer

Most P&L lenders require a 680 minimum. Some go down to 660 with a larger down payment.

Question 5

Can a P&L loan cover a Santa Barbara County home?

Accepted Answer

Yes. Loan limits on non-QM products are set by the lender, not FHFA. High-balance amounts are available.

Question 6

How is income calculated from my P&L?

Accepted Answer

Each lender does it differently. Some use net profit. Others add back depreciation. We compare lenders to find the best calculation for your situation.

P&L Loans for Buellton's Self-Employed Borrowers