Question 1

Does my P&L need to be CPA-prepared?

Accepted Answer

Yes. Lenders require a licensed CPA to prepare and sign it. Bookkeeper or self-prepared statements will not be accepted.

Question 2

Can I use a P&L loan to buy in Shasta Lake?

Accepted Answer

Yes. P&L loans work for purchases and refinances in Shasta County. Property type and loan amount affect which lenders will participate.

Question 3

How is income calculated from my P&L?

Accepted Answer

Lenders average your net income over 12 or 24 months. Some lenders apply an expense factor on top of that calculation.

Question 4

What credit score do I need?

Accepted Answer

Most P&L lenders want 680 or above. Some go down to 640 with stronger compensating factors like larger down payments.

Question 5

How do P&L loan rates compare to conventional rates?

Accepted Answer

They run higher. Non-QM pricing reflects added risk. Rates vary by borrower profile and market conditions.

Question 6

What if my business is less than two years old?

Accepted Answer

Some lenders require at least 2 years of self-employment. Others accept 12 months with strong income history. We find out before you apply.

P&L Statement Loans for Self-Employed Buyers in Shasta Lake