Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Self-prepared P&Ls are rejected by every lender we work with.

Question 2

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

Accepted Answer

Some lenders allow it. Two years gives you more program options and stronger pricing. Rates vary by borrower profile and market conditions.

Question 3

Do P&L loans require tax returns?

Accepted Answer

No. That's the whole point. Your CPA's P&L replaces returns as your income verification document.

Question 4

What credit score do I need in Morgan Hill?

Accepted Answer

Most P&L lenders want 680 or higher. Some programs go to 660 with a larger down payment.

Question 5

How does a P&L loan differ from a bank statement loan?

Accepted Answer

P&L loans use your accountant's income summary. Bank statement loans calculate income from 12-24 months of deposits directly.

Question 6

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes — non-QM loans carry a rate premium over conventional. Rates vary by borrower profile and market conditions.

P&L Statement Loans for Morgan Hill's Self-Employed