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Redding has a strong base of independent contractors, trades, and small business owners. Standard mortgage qualifying leaves most of them out.
A P&L loan uses a CPA-prepared profit and loss statement instead of tax returns. That one shift changes everything for self-employed borrowers.
620–640
Min Credit Score
12 or 24 Months
P&L Period
CPA-Signed P&L
Income Doc
Non-QM
Loan Category
Most lenders want a 12 or 24-month P&L prepared and signed by a licensed CPA. A self-prepared statement won't cut it.
Credit requirements vary by lender. Most P&L programs start around 620-640. Stronger credit means better pricing.
Big retail banks don't offer P&L loans. This product lives in the non-QM wholesale market — which is exactly where we operate.
Lender guidelines differ significantly. One may use 50% of gross profit as income. Another uses net. Shopping matters more here than with any conventional loan.
The most common mistake: borrowers show up with a P&L their bookkeeper made in QuickBooks. Lenders reject it immediately.
Get your CPA involved early. The P&L needs to follow specific formatting standards. A one-page summary won't get it done at underwriting.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use what your accountant says you earned. Both are non-QM — neither uses tax returns.
If your deposits are high but your books show modest profit, bank statements may produce a larger qualifying income. A broker can run both to see which works in your favor.
Redding's economy runs on construction, agriculture, healthcare, and small retail. Many of those workers are self-employed and underserved by conventional lending.
Shasta County home prices are generally more accessible than coastal California. That works in your favor — lower loan amounts mean lower non-QM rate exposure.
A licensed CPA must prepare and sign it. Bookkeeper-prepared or self-made statements are not accepted by lenders.
Some lenders accept a 12-month P&L. Others require 24 months. It depends on the lender's program guidelines.
Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
That's the core problem. If your accountant wrote down most of your income, a bank statement loan may qualify you for more.
Most lenders require at least two years of self-employment history. Some non-QM lenders allow one year in specific cases.
Yes. P&L programs cover primary, second home, and investment purchases. Investor transactions may require a larger down payment.
Profit & Loss Statement Loans in Redding