Question 1

Can I use a P&L loan if I've only been self-employed for one year?

Accepted Answer

Most lenders require two years of self-employment history, though some accept 12 months with strong compensating factors. Expect higher rates and larger down payments with shorter business history.

Question 2

Does my CPA need to be licensed in California?

Accepted Answer

Requirements vary by lender, but most want an active CPA license in any state. Some accept bookkeepers if they carry professional liability insurance and have prepared your returns for multiple years.

Question 3

What if my P&L shows a loss for one quarter?

Accepted Answer

Lenders average income across the full statement period. One weak quarter usually won't kill the deal if your overall trend shows profitability and the average income qualifies you.

Question 4

How does farming income work with P&L loans?

Accepted Answer

Agricultural income follows the same rules but underwriters expect seasonal variation. Your CPA should document normal harvest cycles so the lender understands why income fluctuates predictably.

Question 5

Can I combine W-2 income with my P&L income?

Accepted Answer

Yes. If your spouse has W-2 income or you have part-time employment alongside your business, lenders will combine both sources when calculating qualifying income.

P&L Statement Loans in Guadalupe: Non-QM Financing for Self-Employed Borrowers