Question 1

Does my accountant qualify as a CPA for this?

Accepted Answer

Only a licensed CPA can prepare and sign the P&L. An unlicensed bookkeeper or tax preparer won't satisfy lender requirements.

Question 2

Can I use a P&L loan to buy in Ceres with 10% down?

Accepted Answer

Some lenders allow 10% down on P&L loans. A stronger credit score and lower debt load improve your chances at that tier.

Question 3

How long do I need to be self-employed?

Accepted Answer

Most lenders want at least 2 years of self-employment. Some will accept 12 months with strong compensating factors.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, non-QM rates run higher than conventional. Rates vary by borrower profile and market conditions.

Question 5

What if my P&L shows a loss in one month?

Accepted Answer

Lenders average income over the full 12 or 24 months. One down month won't automatically disqualify you.

Question 6

Can I refinance later into a conventional loan?

Accepted Answer

Yes. Many borrowers use a P&L loan to purchase, then refinance to conventional once they can show qualifying tax return income.

P&L Loans for Self-Employed Buyers in Ceres