Question 1

Can I use P&L statements I prepared myself?

Accepted Answer

No. Lenders require a licensed CPA to prepare and sign your P&L statements. Self-prepared financials don't meet underwriting standards for these programs.

Question 2

What if my business shows a loss on my tax return?

Accepted Answer

That's why P&L loans exist. Your CPA-prepared P&L shows actual business performance before tax deductions. Lenders use that income calculation instead of taxable income.

Question 3

How long does P&L loan approval take?

Accepted Answer

Plan 30-45 days from application to closing. The CPA documentation review adds time compared to conventional loans. Bank statement loans typically close faster.

Question 4

Do P&L loans work for rental property purchases?

Accepted Answer

Yes, but DSCR loans usually work better for investment properties. DSCR programs qualify you on rental income alone without reviewing your business financials.

Question 5

Can I refinance using a P&L loan?

Accepted Answer

Yes. P&L loans work for both purchases and refinances. The same documentation requirements apply regardless of transaction type.

P&L Statement Loans for Self-Employed Borrowers in Watsonville