Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA or tax professional must prepare and sign it. A self-prepared document won't be accepted by any lender.

Question 2

Can I use a P&L loan to buy a home in Patterson?

Accepted Answer

Yes. P&L loans can be used for purchase or refinance. They're a common tool for self-employed buyers who don't qualify on tax returns alone.

Question 3

How long do I need to be self-employed?

Accepted Answer

Most lenders want at least two years of self-employment history. Less than that makes approval very difficult.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes. Expect a higher rate than a conventional or FHA loan. Rates vary by borrower profile and market conditions.

Question 5

Do lenders verify the P&L against other documents?

Accepted Answer

Often yes. Many lenders request business bank statements to cross-check the income shown on the P&L. Be prepared for both.

Question 6

What's the minimum down payment for a P&L loan?

Accepted Answer

Most non-QM lenders start at 10% down. Borrowers with lower credit scores may need 20% or more.

P&L Loans for Self-Employed Buyers in Patterson