Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare it. Lenders won't accept self-prepared statements — the CPA's signature and license number are required.

Question 2

Can I use a P&L loan to buy in Vallejo with 10% down?

Accepted Answer

Some lenders allow 10% down, but 20% gets you better rates and fewer restrictions. It depends on your credit and income profile.

Question 3

Do lenders verify my P&L against bank statements?

Accepted Answer

Yes. Most lenders cross-check the P&L with 3–6 months of business bank statements. Discrepancies will flag the file.

Question 4

What credit score do I need for a P&L loan?

Accepted Answer

Most non-QM lenders want at least a 680. Lower scores are possible but come with higher rates and larger down payment requirements.

Question 5

Is a P&L loan more expensive than a conventional loan?

Accepted Answer

Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 6

How long does my business need to be operating?

Accepted Answer

Most lenders require at least 2 years of self-employment history. Some will accept 1 year with strong income documentation.

P&L Loans for Self-Employed Buyers in Vallejo