Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. Self-prepared P&Ls are rejected by virtually every non-QM lender.

Question 2

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

Accepted Answer

Yes. P&L loans work for purchase and refinance. Property must meet non-QM lender guidelines for the area.

Question 3

Do P&L loans have higher rates than conventional loans?

Accepted Answer

Yes, typically. Non-QM products carry a rate premium over conventional loans. Rates vary by borrower profile and market conditions.

Question 4

How long do I need to be self-employed to qualify?

Accepted Answer

Most lenders require at least 2 years of self-employment history. Some non-QM lenders accept 1 year with strong documentation.

Question 5

What's the difference between a 12-month and 24-month P&L?

Accepted Answer

A 24-month P&L averages more income history and can help if earnings grew recently. A 12-month P&L shows only recent performance.

Question 6

Can a Dinuba farmer or ag business owner use a P&L loan?

Accepted Answer

Yes — it's one of the better fits for ag operators. Farm income with heavy depreciation write-offs often looks better on a P&L than a tax return.

P&L Loans for Self-Employed Buyers in Dinuba, CA