Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA or tax professional must prepare it. Self-prepared statements are not accepted by lenders.

Question 2

Do I still need to file taxes to qualify?

Accepted Answer

You don't submit tax returns for income verification. Lenders may still ask for business licenses or bank statements to confirm you're operating.

Question 3

How long does my business need to be open?

Accepted Answer

Most lenders require 2 years of self-employment history. Some non-QM lenders accept 1 year with strong documentation.

Question 4

Are P&L loan rates higher than conventional?

Accepted Answer

Yes. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.

Question 5

Can I use a P&L loan to buy in Santa Cruz County?

Accepted Answer

Yes. P&L loans are available for primary homes, second homes, and investment properties throughout Santa Cruz County.

Question 6

What if my P&L shows a loss in one period?

Accepted Answer

A single down period isn't automatic disqualification. Lenders look at the trend — consistent losses will likely kill the deal.

P&L Loans for Self-Employed Buyers in Santa Cruz