Question 1

How recent must my P&L statement be?

Accepted Answer

Most lenders require statements no older than 90 days at closing. Your CPA must prepare updated financials if your existing documents exceed this timeframe during the loan process.

Question 2

Can I use my business accountant instead of a CPA?

Accepted Answer

Lenders typically require statements prepared by licensed CPAs or EAs (Enrolled Agents). Some accept licensed public accountants depending on state licensing requirements and lender guidelines.

Question 3

Do I still need to provide tax returns?

Accepted Answer

Yes, lenders usually request personal tax returns to verify self-employment history and assess overall financial stability. However, they use your P&L statements rather than tax returns to calculate qualifying income.

Question 4

What if my business is relatively new?

Accepted Answer

Most programs require two years of self-employment. Borrowers with shorter histories may qualify through bank statement loans or by combining W-2 income from a previous job with current business income.

Question 5

How do rates compare to conventional loans?

Accepted Answer

P&L statement loans typically carry rates 0.5-2% higher than conventional mortgages due to flexible documentation. Rates vary by borrower profile and market conditions, credit strength, and down payment size.

Profit & Loss Statement Loans in Saratoga: Financing for Self-Employed Homebuyers