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Profit & Loss Statement Loans in Selma
Self-employed borrowers in Selma face a common problem: strong income but tax returns that don't show it. P&L loans solve this by using your business profit and loss statement instead of two years of tax returns.
This matters in Selma's agricultural economy where farm owners, equipment operators, and ag business owners write off significant expenses. Your CPA prepares a 12 or 24-month P&L showing actual business income without requiring Schedule C tax filings.
You need a licensed CPA to prepare your P&L statement. The CPA must be independent—not a family member or business partner. Most lenders require 680 minimum credit score and 20% down for purchases.
The P&L must show net profit after expenses. Lenders verify your CPA license and may request bank statements to confirm deposits align with reported income. Expect rates 1-2% higher than conventional loans.
Only non-QM lenders offer true P&L loans. Each lender sets different CPA requirements—some want two years of CPA licensing history, others accept newly licensed CPAs. Rate and down payment requirements vary significantly between lenders.
We shop your P&L across 200+ wholesale lenders to find who accepts your specific business structure. Some lenders prefer sole proprietors while others specialize in LLCs and S-corps. The right lender match can save you 0.5% on rate.
Get your CPA involved early. Many CPAs prepare P&L statements that don't meet lender specifications—wrong time period, missing detail, incorrect format. We provide your CPA with exact lender requirements before they start work.
Timing matters. If your business is seasonal, a 12-month P&L may look weaker than 24 months. We analyze which time period shows your income most favorably and match you to lenders who accept that timeframe.
Bank statement loans often beat P&L loans for borrowers who can show 12-24 months of consistent deposits. Bank statements skip the CPA cost and some lenders accept lower credit scores. But P&L loans work better when your deposits fluctuate or you co-mingle business and personal accounts.
1099 loans are simpler if you receive 1099 income forms from clients. Asset depletion loans make sense for business owners with significant liquid assets but lower reported income. We compare all options based on your actual documentation.
Selma's ag-based economy means many borrowers run seasonal businesses with heavy equipment depreciation. These legitimate business expenses lower taxable income but hurt conventional loan approval. P&L loans let you show pre-write-off income.
Property values in Selma typically support 20% down requirements on single-family homes. Some borrowers use P&L loans for investment properties where rental income alone won't qualify under DSCR loan requirements.
Your CPA needs an active state license and must be independent from you. Some lenders require two years of licensing history but others accept newly licensed CPAs.
Some lenders offer P&L loans at 15% down with higher rates. Below 15% down becomes difficult to find and typically requires exceptional credit above 720.
Most lenders want 12-24 months of business operation. Your P&L must cover this timeframe and your CPA must verify business continuity throughout the period.
Lenders look at net profit over the full P&L period. Seasonal businesses with occasional monthly losses can still qualify if total period shows positive income.
Yes, if you have 12-24 months of business bank statements showing consistent deposits. Bank statement loans skip CPA preparation but require clean banking records.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.