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I am self employed and will be closing on a home in March. I know the lender will need my 2015 & 2016 tax returns to document my business income. Will they also need a year to date profit and loss statement with it being so early in the year?
Yes.
EDIT: FHA requires the P&L but Fannie doesn't according to a trusted lender I just spoke to 15 minutes ago - and as a result, this particular lender doesn't require the P&L if you are getting a conventional loan. So I guess the answer would be that it depends on your specific lender's guidelines.