Question 1

Does my CPA have to be licensed in California?

Accepted Answer

Your CPA must be a licensed, third-party accountant. Most lenders require a California CPA license and will verify it.

Question 2

Can I use a P&L loan for a Capitola vacation rental?

Accepted Answer

Yes, but investment properties may require a larger down payment and stronger credit. A DSCR loan may actually be a better fit for rentals.

Question 3

How recent does my P&L statement need to be?

Accepted Answer

Most lenders want a P&L dated within 60 days of application. Stale statements get rejected — plan accordingly.

Question 4

Will a P&L loan have a higher rate than a conventional loan?

Accepted Answer

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

Question 5

What if my business had a down year? Can I still qualify?

Accepted Answer

Lenders look at the income shown on the P&L period used. A single bad year may hurt — a 24-month average can sometimes soften the impact.

P&L Statement Loans for Self-Employed Buyers in Capitola