Question 1

Does my CPA need specific credentials to prepare the P&L?

Accepted Answer

Yes. The CPA must hold an active license in any U.S. state and include their license number on the statement. Enrolled agents and bookkeepers don't qualify.

Question 2

Can I use a partial-year P&L if my business is seasonal?

Accepted Answer

Some lenders accept year-to-date statements with two-year business history. We underwrite to annualized income and factor seasonality into qualification.

Question 3

How do lenders verify the P&L isn't inflated?

Accepted Answer

They cross-check against business bank statements, confirm CPA licensing, and analyze profit margins against industry norms. Outliers trigger deeper review.

Question 4

What if my P&L shows income but my tax returns show a loss?

Accepted Answer

That's the entire point of P&L loans. You qualify on business income before depreciation and deductions. Tax returns aren't submitted.

Question 5

Can I refinance an existing mortgage with a P&L loan?

Accepted Answer

Yes. Rate-and-term refis go to 80% LTV. Cash-out caps at 75% LTV. Must meet credit and reserve requirements.

P&L Statement Loans in Porterville — CPA-Verified Income for Self-Employed Borrowers