Question 1

Who prepares the P&L for this loan?

Accepted Answer

A licensed CPA must prepare and sign it. Lenders won't accept self-prepared statements.

Question 2

Can I use one year of P&L income?

Accepted Answer

Some lenders allow 12-month P&L statements. Others require 24 months. It depends on the lender and your profile.

Question 3

Do P&L loans have higher interest rates?

Accepted Answer

Yes, non-QM loans typically carry higher rates than conventional loans. Rates vary by borrower profile and market conditions.

Question 4

Can I buy farmland or rural property with a P&L loan?

Accepted Answer

Some lenders will, but rural and agricultural properties get extra scrutiny. Confirm lender guidelines before you go under contract.

Question 5

What if my tax returns show a loss but my business is profitable?

Accepted Answer

That's exactly what P&L loans are designed for. The P&L reflects actual business performance, not tax-adjusted net income.

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