Question 1

What if my business shows a loss on my tax returns but profit on P&L?

Accepted Answer

P&L loans use the CPA-prepared statement, not tax returns. Write-offs that create tax losses don't affect P&L loan qualification if gross profit supports the mortgage payment.

Question 2

Does my CPA need special certification for P&L statement loans?

Accepted Answer

Your CPA must hold an active state license and be independent from your business. They'll sign a certification letter that underwriters verify directly with state licensing boards.

Question 3

Can I use P&L loans for investment properties in Waterford?

Accepted Answer

Yes, but DSCR loans typically offer better terms for rentals since they ignore personal income. P&L programs work best for primary residences and second homes.

Question 4

How far back do lenders look at my business P&L statements?

Accepted Answer

Most require 12-24 months. Newer businesses sometimes qualify with 12 months plus strong cash reserves, but expect higher rates and down payment requirements.

Question 5

What interest rate should I expect on a P&L loan in Waterford?

Accepted Answer

Rates vary by borrower profile and market conditions. Expect 0.5-1.5% above conventional rates as of February 2026, with better pricing for higher credit scores and larger down payments.

P&L Statement Loans in Waterford: Mortgages Built for Self-Employed Borrowers