Question 1

How far back does my business need to operate?

Accepted Answer

Most programs require 12 months minimum under the same business structure. Two years of history opens better rates and lower down payment options.

Question 2

Can I use a P&L if my CPA only does my taxes?

Accepted Answer

Yes, but they need to prepare a formal P&L statement and sign a certification letter. Not all tax preparers will do this for liability reasons.

Question 3

What if my P&L shows less income than my bank statements?

Accepted Answer

Lenders flag this as a red flag. Your CPA needs to explain the gap, or you should switch to a bank statement program instead.

Question 4

Do P&L loans cost more than conventional mortgages?

Accepted Answer

Rates run 0.5-1.5% higher than conventional. You're paying for the flexibility to qualify without tax returns showing full income.

Question 5

Can I refinance using a P&L statement?

Accepted Answer

Yes. Cash-out and rate-term refinances both work with P&L documentation as long as you meet the credit and equity requirements.

P&L Statement Loans in Milpitas: Finance Your Tech Equity Without Tax Returns