Question 1

How recent must my P&L statements be for a Lompoc mortgage?

Accepted Answer

Most lenders require P&L statements covering the most recent 12-24 months, prepared within 90 days of application. Your CPA must sign and date each statement with their license number clearly displayed.

Question 2

Can I use P&L loans for properties throughout Santa Barbara County?

Accepted Answer

Yes, P&L statement loans work for properties anywhere in Santa Barbara County, including Lompoc, Santa Maria, and surrounding areas. Property type and location may affect down payment requirements.

Question 3

What if my business is less than two years old?

Accepted Answer

Some programs accept one year of business history if you have prior industry experience. The shorter your business history, the stronger your other qualifications need to be.

Question 4

Do P&L loans have higher interest rates than conventional mortgages?

Accepted Answer

Rates typically run 0.5-2% higher than conventional programs due to the flexible documentation. Rates vary by borrower profile and market conditions, with stronger applicants receiving better pricing.

Question 5

Can I refinance an existing Lompoc property with a P&L loan?

Accepted Answer

Yes, P&L loans work for both purchases and refinances. Cash-out refinances typically require more equity and may have stricter requirements than rate-and-term refinances.

Profit & Loss Statement Loans in Lompoc: Financing Solutions for Self-Employed Borrowers