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Vallejo attracts a lot of self-employed buyers. Contractors, small business owners, and freelancers all deal with the same problem — tax returns that don't show real income.
A P&L loan skips the tax return. A CPA prepares a profit and loss statement, and lenders use that to qualify you instead.
12 or 24 months
P&L Period Required
680 typical
Min Credit Score
CPA-prepared P&L
Income Doc
10–20% typical
Down Payment
2 years preferred
Business History
Profit & Loss Statement Loans in Vallejo
Most lenders want a 12- or 24-month P&L prepared by a licensed CPA. The statement needs to show consistent business income — not just a profitable month.
Credit requirements are stricter than FHA. Expect lenders to want a 680 or higher. Down payments typically start at 10% but 20% is more common at competitive rates.
Big retail banks don't offer P&L loans. This is a non-QM product, which means it lives in the wholesale and private lending world.
At SRK CAPITAL, we work with 200+ wholesale lenders. That matters here — P&L guidelines vary a lot between lenders. Rate and approval terms depend heavily on who you're matched with.
The P&L has to be airtight. Lenders will scrutinize it. If your CPA isn't familiar with non-QM requirements, the statement can come back rejected.
Get your CPA on the phone before you apply. They need to know the format lenders expect — income breakdown, expense detail, and a clear net profit figure.
Bank statement loans are the close alternative. Those use 12–24 months of deposits to calculate income — no CPA required. P&L loans can qualify you on less paperwork if your accountant is solid.
1099 loans work if most of your income is contract-based. Asset depletion loans fit borrowers with strong savings but low monthly income. The right pick depends on how your money actually flows.
Vallejo has a strong base of independent tradespeople and small business owners — exactly who P&L loans are built for. Plumbers, electricians, and contractors here often write off heavily, tanking their taxable income.
Solano County prices are lower than the Bay Area, which helps. A P&L loan doesn't need to stretch as far here as it would in San Francisco or San Jose.
A licensed CPA must prepare it. Lenders won't accept self-prepared statements — the CPA's signature and license number are required.
Some lenders allow 10% down, but 20% gets you better rates and fewer restrictions. It depends on your credit and income profile.
Yes. Most lenders cross-check the P&L with 3–6 months of business bank statements. Discrepancies will flag the file.
Most non-QM lenders want at least a 680. Lower scores are possible but come with higher rates and larger down payment requirements.
Yes. Non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.
Most lenders require at least 2 years of self-employment history. Some will accept 1 year with strong income documentation.