Question 1

Who prepares the P&L statement for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders will not accept self-prepared statements or bookkeeper summaries.

Question 2

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

Accepted Answer

Yes. P&L loans work for purchases and refinances on primary homes, second homes, and investment properties.

Question 3

How is my income calculated from a P&L?

Accepted Answer

Lenders average your net income over 12 or 24 months. Some use gross revenue with an expense factor — it varies by lender.

Question 4

Are P&L loan rates higher than conventional rates?

Accepted Answer

Yes, typically. These are non-QM products with more lender risk. Rates vary by borrower profile and market conditions.

Question 5

Do I need to be self-employed for 2 years?

Accepted Answer

Most lenders require 2 years of self-employment history. Some non-QM lenders allow 1 year with strong compensating factors.

Question 6

What if my P&L shows a loss in one year?

Accepted Answer

A loss year is a problem. Lenders want to see consistent profitability across the P&L period — losses typically kill the file.

P&L Statement Loans for Self-Employed Buyers in Santa Paula