Question 1

Who prepares the P&L statement?

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 instead of two?

Accepted Answer

Some lenders accept 12 months. Others require 24. It depends on the lender and your borrower profile.

Question 3

Do P&L loans have higher rates than conventional?

Accepted Answer

Yes. Non-QM loans carry more lender risk. Rates are higher than conventional. Rates vary by borrower profile and market conditions.

Question 4

How is income calculated from a P&L?

Accepted Answer

Lenders use net profit from the statement, then divide by the number of months covered to get monthly income.

Question 5

Does my business need to be in Wheatland?

Accepted Answer

No. Your business can operate anywhere. The property you're purchasing must be in Wheatland.

Question 6

Can I combine a P&L loan with a co-borrower on W-2 income?

Accepted Answer

Yes. Many lenders allow mixed-income applications. The W-2 income can strengthen your overall file.

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