Question 1

Does my CPA have to prepare the P&L, or can I do it myself?

Accepted Answer

It must come from a licensed CPA. Self-prepared statements are rejected. The CPA's signature and license number must appear on the document.

Question 2

How much can I borrow with a P&L loan in Monte Sereno?

Accepted Answer

Loan limits depend on the lender and your income. Some non-QM lenders go well into jumbo territory. We match you with lenders who handle high loan amounts in Santa Clara County.

Question 3

Can I use one year of P&L to qualify?

Accepted Answer

Some lenders allow 12 months. Most prefer 24 months for stronger qualification. One-year P&L programs carry higher rates. Rates vary by borrower profile and market conditions.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Non-QM programs price higher than conventional loans. The trade-off is qualifying on real business income instead of your tax return. Rates vary by borrower profile and market conditions.

Question 5

What if my business income fluctuates month to month?

Accepted Answer

Lenders average the income over the P&L period. Big swings can reduce your qualifying income. Your CPA's presentation of the numbers makes a difference.

Question 6

Can I combine a P&L loan with bank statements?

Accepted Answer

Some lenders allow both to strengthen the file. It depends on the lender's guidelines. We'll identify which approach produces the highest qualifying income for your situation.

P&L Statement Loans for Monte Sereno's Self-Employed