Question 1

Can I use my business accountant instead of a CPA?

Accepted Answer

No. Lenders require a licensed CPA with an active credential. Unlicensed accountants or bookkeepers cannot prepare qualifying P&L statements.

Question 2

What if my P&L shows declining profits?

Accepted Answer

Most lenders reject applications with year-over-year profit declines exceeding 20%. You might qualify using bank statements or asset depletion instead.

Question 3

Do I need business tax returns too?

Accepted Answer

Some lenders require them for verification, others accept the P&L alone. We match you to lenders based on your documentation preferences.

Question 4

How long does P&L underwriting take?

Accepted Answer

Expect 7-14 days for initial approval after CPA and business verification. Full underwriting adds another 10-15 days depending on property complexity.

Question 5

Can I include projected income in the P&L?

Accepted Answer

No. Lenders use only historical income already earned and documented. Future projections or pending contracts don't count toward qualification.

Question 6

What if I own multiple businesses?

Accepted Answer

You can combine income from multiple entities if each has a separate CPA-prepared P&L. All businesses must meet the 2-year operating requirement.

P&L Statement Loans for Los Altos Hills Self-Employed Borrowers