Question 1

Do I need tax returns to qualify for a Profit and Loss Statement Loan?

Accepted Answer

No. P&L Statement Loans are designed for self-employed borrowers whose P&L statements and bank statements tell the real story. Tax returns are optional. Lenders focus on actual cash flow, not deductions.

Question 2

How much down payment do I need for a P&L loan in Cotati?

Accepted Answer

Typically 10% to 25% depending on your credit score, business history, and loan amount. Stronger credit and longer business tenure can mean lower down payments. Jumbo loans above $897,000 usually require 25% down.

Question 3

How long does it take to close a Profit and Loss Statement Loan?

Accepted Answer

Correspondent lenders typically close in 30–45 days. Portfolio lenders may take 45–60 days. P&L loans require more documentation review than conventional loans, so the timeline is slightly longer.

Question 4

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

Accepted Answer

Most lenders require a minimum FICO of 680. Some portfolio lenders go as low as 660 with compensating factors like larger down payment or strong reserves. Higher scores get better rates.

Question 5

Can I use a Profit and Loss Statement Loan to buy above the conforming limit?

Accepted Answer

Yes, but jumbo loans above $897,000 carry stricter requirements. Plan on 25% down, six months of reserves, and a rate premium. Lenders tighten overlays for jumbo P&L loans because the risk is higher.

Profit and Loss Statement Loans in Cotati