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Profit & Loss Statement Loans in Corcoran
Corcoran's economy runs on agriculture and small business. Standard W-2 documentation doesn't work for farm operators, contractors, and business owners who write off most income.
P&L statement loans let self-employed borrowers use 12-24 months of CPA-prepared financials instead of tax returns. This is critical when your 1040 shows $40K but your business grossed $200K.
You need two years of self-employment in the same industry. Most lenders require a CPA or licensed accountant to prepare your P&L – a bookkeeper won't cut it.
Credit minimums typically start at 660, though some lenders go to 620 for strong profiles. Expect 10-20% down for primary residence, 20-30% for investment properties.
Not all non-QM lenders handle P&L loans the same way. Some average 12 months of net income. Others use 24 months. The calculation method directly impacts your buying power.
We shop your P&L across lenders who specialize in self-employed borrowers. Rate spreads between best and worst offers run 1-2 percentage points on identical scenarios.
Your CPA's presentation matters more than you think. I've seen identical income levels get different treatment based on how expenses are categorized and documented.
Work with your accountant before applying. Clean up irregular months. Document one-time expenses separately. Lenders look for stable, recurring income – not volatile swings quarter to quarter.
Bank statement loans pull directly from deposits and skip the CPA requirement. They work faster but cost more – usually 0.25-0.75% higher than P&L rates.
If your business expenses are legitimately high, P&L loans show stronger income than bank statements. If you run a cash-heavy business, bank statements might prove more income.
Corcoran's agricultural economy means seasonal income patterns. Lenders understand harvest cycles but need to see consistent annual performance across multiple years.
Property values in Kings County run lower than coastal California. This helps with down payment requirements but limits how much equity you can tap for future business needs.
No. Lenders require a CPA or licensed accountant signature. Bookkeeper-prepared statements don't meet underwriting standards for these loans.
Most average 12 or 24 months of net profit. Some add back depreciation and one-time expenses. Calculation methods vary significantly between lenders.
Switch to a bank statement loan program. You'll qualify based on deposits rather than CPA-reported net income.
Not for income verification. Lenders may request them to verify business existence and confirm no undisclosed liabilities.
These loans work for residential property only. For commercial real estate, look at DSCR loans that qualify based on rental income.
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.