Question 1

How far back do P&L statements need to go?

Accepted Answer

Most lenders want 12-24 months depending on your business age and income trend. Newer businesses may need two full years while established ones can use 12 months.

Question 2

Does my CPA need special credentials to prepare the P&L?

Accepted Answer

Your accountant needs an active CPA license or EA certification. Some lenders also accept licensed public accountants depending on the state.

Question 3

Can I use P&L loans for investment properties?

Accepted Answer

Yes, but most programs require the property to be your primary residence or second home. For pure investment deals, DSCR loans typically work better.

Question 4

What if my P&L shows declining income?

Accepted Answer

Lenders want stable or growing profit trends. A single down year might work with strong explanation, but consistent decline creates approval problems.

Question 5

How do rates compare to conventional loans?

Accepted Answer

Expect rates 1-2% higher as of February 2026. The gap narrows with larger down payments and strong credit scores above 720.

P&L Statement Loans for Self-Employed Borrowers in Cotati