Question 1

Who prepares the P&L statement?

Accepted Answer

A licensed CPA must prepare and sign it. Tell your CPA upfront it's for mortgage underwriting — format matters.

Question 2

Do I need tax returns for this loan?

Accepted Answer

No. The P&L replaces tax returns entirely. That's the core appeal for self-employed borrowers with heavy write-offs.

Question 3

How long must my business be operating?

Accepted Answer

Most lenders require 2 years in business. Newer businesses rarely qualify for P&L underwriting.

Question 4

Can I buy in Davis with a P&L loan?

Accepted Answer

Yes. Non-QM loans have no geographic restrictions in California. Davis properties qualify like any other.

Question 5

How does a P&L loan compare to a bank statement loan?

Accepted Answer

P&L uses your CPA's income figure. Bank statement loans calculate income from raw deposits. Each works better in different situations.

P&L Loans for Self-Employed Buyers in Davis