Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare and sign it. Lenders won't accept borrower-prepared statements.

Question 2

Can I use one year of P&L instead of two?

Accepted Answer

Some lenders allow 12-month P&L. Others require 24 months. We'll match you to the right lender for your situation.

Question 3

Do I still need to show tax returns?

Accepted Answer

No. That's the point of this loan. The P&L replaces tax return income verification for self-employed borrowers.

Question 4

How is my income calculated from the P&L?

Accepted Answer

Lenders typically use your net profit shown on the P&L. Some add back depreciation or other non-cash expenses.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes — non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.

Question 6

Does this work for Fairfield rental property purchases?

Accepted Answer

Not ideally. DSCR loans are built for investment properties. P&L loans are designed for primary or second home purchases.

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