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Sonoma wine country draws a lot of business owners. Vintners, restaurateurs, boutique hotel operators — these borrowers rarely show clean W-2 income.
A P&L loan uses a CPA-prepared profit and loss statement to verify income. No tax returns. No pay stubs. Just your business financials.
620–660 typical
Min Credit Score
CPA-prepared P&L
Income Doc
12 or 24 months
P&L Period
10–20% typical
Down Payment
Non-QM
Loan Category
Profit & Loss Statement Loans in Sonoma
Your CPA prepares a 12 or 24-month P&L statement. Lenders use that to calculate your qualifying income. Simple concept, but lender standards vary widely.
Expect a minimum credit score around 620-660 depending on the lender. Down payment requirements typically start at 10-20%. Rates vary by borrower profile and market conditions.
Most retail banks don't offer P&L loans. This is a non-QM product — it lives in the wholesale and private lending space.
We work with 200+ wholesale lenders. That matters here because P&L guidelines differ dramatically from one lender to the next.
The biggest mistake self-employed borrowers make: waiting until tax season to start the process. Get your CPA involved early.
A well-prepared P&L can make or break your qualifying income figure. The format and level of detail matters to underwriters.
Bank Statement Loans use 12-24 months of deposits to calculate income. P&L loans rely on your CPA's summary instead. Both are non-QM — the right choice depends on your financials.
1099 loans work well for independent contractors with clean 1099 income. If your income flows through a business entity, P&L is often the cleaner path.
Sonoma County's wine and hospitality economy creates a large self-employed borrower pool. Seasonal revenue swings are common — lenders account for this differently.
Properties in Sonoma sometimes carry mixed-use or agricultural designations. Make sure your lender is comfortable with the property type before you lock in.
Your CPA prepares and signs it. Lenders won't accept a borrower-prepared P&L.
Some lenders accept 12 months. Others require 24. It depends on the lender and your credit profile.
Yes. Non-QM products price higher than conventional. Rates vary by borrower profile and market conditions.
Often yes. Seasonal and business income that looks low on taxes can look stronger on a well-prepared P&L.
Yes. Many borrowers use P&L loans to purchase, then refinance once tax returns reflect stronger income.