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Los Gatos attracts founders, consultants, and business owners — people whose tax returns don't show their real income.
P&L loans fill that gap. A CPA prepares your profit and loss statement, and lenders use that to qualify you instead of tax returns.
680+
Min Credit Score
CPA-Prepared P&L
Income Doc
10–20% Typical
Down Payment
12 or 24 Months
P&L Period
You need a CPA-prepared P&L — typically covering 12 or 24 months. The CPA must be licensed and sign off on the document.
Most lenders want a 680+ credit score for this loan type. Down payments usually start at 10%, but 20% gets you better pricing.
P&L loans are non-QM products. That means they don't follow Fannie Mae or Freddie Mac guidelines — and most banks don't offer them.
Wholesale lenders specialize in these. Shopping across 200+ lenders matters more here than on any conventional loan.
The biggest mistake I see: borrowers submit a P&L their accountant threw together in 20 minutes. Lenders reject those fast.
Your CPA needs to produce a clean, signed statement with consistent figures. The quality of that document drives the approval.
Bank statement loans look at 12-24 months of deposits. P&L loans use your CPA's summary of income and expenses instead.
If your deposits are messy — lots of transfers, business mix-ins — a P&L can actually qualify you for more. It depends on your situation.
Los Gatos home prices sit well above conforming loan limits. P&L loans can go jumbo — many lenders cap at $3M or higher.
Santa Clara County business owners often write off aggressively. That crushes taxable income and kills conventional approval. P&L is built for exactly this profile.
A licensed CPA must prepare and sign it. A bookkeeper or self-prepared statement won't be accepted by lenders.
No. That's the point of a P&L loan. Lenders qualify you on the CPA statement, not your filed returns.
Yes. Many non-QM lenders offer P&L loans well above conforming limits. Los Gatos price points make this common.
Significantly. Non-QM pricing is risk-based. A 740+ score gets you meaningfully better terms than a 680. Rates vary by borrower profile and market conditions.
Most lenders want at least 2 years of self-employment history. A 12-month P&L alone usually isn't enough to qualify.
Profit & Loss Statement Loans in Los Gatos