Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper-prepared or self-prepared statements are not accepted by lenders.

Question 2

Can I use a P&L loan for a jumbo purchase in Goleta?

Accepted Answer

Some non-QM lenders offer P&L programs above conforming limits. Terms depend on your credit, down payment, and lender guidelines.

Question 3

How does a P&L loan differ from a bank statement loan?

Accepted Answer

A bank statement loan averages your deposits. A P&L loan uses your CPA's income summary. Both qualify self-employed borrowers — the better option depends on your numbers.

Question 4

How long does my business need to be operating?

Accepted Answer

Most lenders require 2 years of self-employment history. Some allow 1 year with strong compensating factors.

Question 5

Will my tax write-offs hurt my P&L loan approval?

Accepted Answer

Less than they would on a conventional loan. The P&L reflects business income before personal deductions — that's the key advantage of this program.

Question 6

What credit score do I need for a P&L loan in Goleta?

Accepted Answer

Most P&L lenders start at 620-660. Higher scores open up better rates and lower down payment options.

P&L Loans for Self-Employed Buyers in Goleta