Question 1

Does my P&L have to be CPA-prepared?

Accepted Answer

Yes. Self-prepared statements won't be accepted. The CPA must sign and certify the document.

Question 2

Can I use a P&L loan on a rural Tuolumne County property?

Accepted Answer

Yes, but lender overlays apply to rural collateral. Not every non-QM lender will approve rural parcels.

Question 3

How many months does the P&L need to cover?

Accepted Answer

Most lenders require 12 or 24 months. Longer history generally strengthens your file.

Question 4

Will my tax write-offs hurt my qualifying income?

Accepted Answer

Yes. The P&L reflects gross income minus business expenses. Large deductions lower what lenders count.

Question 5

How is a P&L loan different from a bank statement loan?

Accepted Answer

A P&L uses a CPA document. A bank statement loan uses deposit history. Both avoid tax returns.

Question 6

What credit score do I need for a P&L loan?

Accepted Answer

Most lenders start around 620. Higher scores improve your rate. Rates vary by borrower profile and market conditions.

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