Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Self-prepared statements are not accepted by P&L lenders.

Question 2

Can I use one year of P&L?

Accepted Answer

Some lenders accept 12 months. Others require 24. A 24-month P&L typically gets better rate options.

Question 3

Do I need tax returns at all?

Accepted Answer

No. That's the point of this loan. The P&L replaces tax return income verification entirely.

Question 4

What credit score do I need?

Accepted Answer

Most P&L lenders start at 660. Higher scores above 700 unlock significantly better rate tiers. Rates vary by borrower profile and market conditions.

Question 5

Can I buy in Sebastopol with a P&L loan?

Accepted Answer

Yes. P&L loans are available statewide in California with no geographic restriction. Sonoma County properties qualify.

Question 6

How is income calculated from the P&L?

Accepted Answer

Lenders typically use net profit from the P&L. Some add back depreciation. Your CPA's number drives the calculation.

P&L Loans for Sebastopol's Self-Employed Buyers