Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA or tax professional must prepare it. Self-prepared statements are not accepted by lenders.

Question 2

Do I still need bank statements?

Accepted Answer

Most lenders require 2-3 months of business bank statements to verify the P&L. They check for consistency.

Question 3

How long does my business need to be operating?

Accepted Answer

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

Question 4

Can I use this loan for a Farmersville purchase?

Accepted Answer

Yes. P&L loans work for purchases and refinances in Tulare County. Down payment and reserve requirements still apply.

Question 5

Are P&L loan rates higher than conventional rates?

Accepted Answer

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

Question 6

What if my P&L shows a loss?

Accepted Answer

A net loss disqualifies you. The lender needs the P&L to show positive income sufficient to cover your debt obligations.

P&L Statement Loans for Self-Employed Buyers in Farmersville