Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders won't accept borrower-prepared statements or bookkeeper documents.

Question 2

Can I use one year of P&L statements?

Accepted Answer

Some lenders accept 12 months. Others require 24. A broker can match you with the program that fits your situation.

Question 3

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

Accepted Answer

Most lenders start at 680. Higher scores open better rates and higher LTV options. Rates vary by borrower profile and market conditions.

Question 4

Do P&L loans carry higher rates than conventional?

Accepted Answer

Yes — non-QM loans price above conventional. The gap depends on your score, down payment, and which lender you use. Rates vary by borrower profile and market conditions.

Question 5

My business had a down year. Can I still qualify?

Accepted Answer

Possibly. A 24-month P&L averages both years. Strong reserves and a solid credit score can offset a weaker income period.

Question 6

Is a P&L loan better than a bank statement loan for me?

Accepted Answer

Depends on your financials. If your deposits are scattered or high in expenses, a P&L showing net profit may qualify you for more.

P&L Statement Loans for Self-Employed Buyers in Solvang