Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Bookkeeper-prepared statements are rejected by most lenders.

Question 2

Can I use a P&L loan to buy in a rural area like Dunsmuir?

Accepted Answer

Yes. P&L loans aren't restricted by property location. Rural properties are eligible.

Question 3

How is this different from a bank statement loan?

Accepted Answer

Bank statement loans use your deposit history. P&L loans use your accountant's income calculation. Some borrowers qualify better with one than the other.

Question 4

Do P&L loans have higher rates than conventional loans?

Accepted Answer

Yes, typically. Non-QM products carry more lender risk. Rates vary by borrower profile and market conditions.

Question 5

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders require 2 years. Some non-QM lenders will consider 12 months with strong documentation.

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