Question 1

Who prepares the P&L statement?

Accepted Answer

Your CPA must prepare and sign it. Lenders will not accept a self-prepared P&L under any circumstances.

Question 2

Can I use one year of P&L?

Accepted Answer

Some lenders accept 12 months. Others require 24. A longer P&L history usually gets you better pricing. Rates vary by borrower profile and market conditions.

Question 3

Do I need to show bank statements too?

Accepted Answer

Some lenders require 2-3 months of business bank statements to support the P&L. Others accept the P&L alone.

Question 4

What credit score do I need in Santa Barbara?

Accepted Answer

Most P&L lenders want 680 or higher. A stronger score improves your rate, especially on larger loan amounts.

Question 5

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

Accepted Answer

Bank statement loans calculate income from deposit history. P&L loans use your CPA's prepared income summary instead.

Question 6

Are P&L loans available for investment properties in Santa Barbara?

Accepted Answer

Yes, but expect a larger down payment and tighter reserves. Investment P&L deals get scrutinized more closely in underwriting.

P&L Loans for Self-Employed Buyers in Santa Barbara