Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. Lenders will not accept a self-prepared P&L statement.

Question 2

Do I still need tax returns?

Accepted Answer

No. That's the point of this loan. The CPA-prepared P&L replaces tax returns as the primary income document.

Question 3

Can I use a P&L loan for a jumbo purchase in San Jose?

Accepted Answer

Yes. Many non-QM lenders offer P&L programs above conforming limits. San Jose prices often require it.

Question 4

How is my qualifying income calculated?

Accepted Answer

The lender uses net or gross income from your P&L — the method depends on the lender's guidelines. Ask your broker before applying.

Question 5

What credit score do I need?

Accepted Answer

Most P&L lenders start at 680. Higher scores get better rates. Rates vary by borrower profile and market conditions.

Question 6

How does this compare to a bank statement loan?

Accepted Answer

Bank statements use deposit history. P&L uses your accountant's income summary. Your CPA's numbers may show higher qualifying income.

P&L Statement Loans for Self-Employed Buyers in San Jose