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Profit & Loss Statement Loans in Hanford
Hanford's business community includes ag-related contractors, equipment operators, and service providers who report irregular income. Traditional W-2 documentation doesn't capture their earning power.
P&L statement loans let self-employed borrowers qualify using CPA-prepared financials instead of tax returns. This works when your business shows strong revenue but heavy write-offs reduce your reported income.
You need a CPA-prepared profit and loss statement covering 12-24 months of business activity. The CPA must be licensed and can't be a family member or business partner.
Most lenders require 640+ credit and 15-20% down. You'll prove business existence through license, tax ID, or corporate filings. Some lenders want two years in business, others accept one year.
About 30 of the 200+ lenders we access offer P&L programs. Underwriting standards vary significantly. Some accept recent business startups, others want two-year track records.
Rate premiums run 0.75-1.5% above conventional loans. Lenders price based on down payment, credit score, and how consistent your P&L shows month-to-month revenue. Rates vary by borrower profile and market conditions.
P&L loans work best when your business generates strong cash flow but you maximize deductions. The CPA calculates net profit from your P&L, then applies a percentage (often 75-100%) as qualifying income.
We see Hanford borrowers switch from bank statement to P&L programs when they've got clean bookkeeping and a relationship with a CPA. The documentation burden is lighter than pulling 12-24 months of bank statements.
Bank statement loans calculate income from deposits, which captures revenue but also personal transfers and non-business activity. P&L loans isolate actual business profit, giving cleaner income calculation.
If you've been self-employed under two years, bank statements might be your only option. After two years, P&L programs typically offer better rates because the documentation is more standardized.
Hanford's agricultural economy means many self-employed borrowers have seasonal income fluctuations. Lenders reviewing P&L statements understand this but want to see consistent year-over-year trends.
Property values in Kings County run lower than coastal markets. The reduced loan amounts sometimes mean conventional loans with larger down payments become competitive alternatives to non-QM pricing.
No. Lenders require a licensed CPA to prepare and sign the profit and loss statement. The CPA cannot be a family member or have ownership interest in your business.
Most lenders require 12-24 months of business activity. Some accept one-year P&L statements if you've been in business longer but recent financials show stronger performance.
Lenders look at overall trend and year-over-year performance. One weak quarter won't disqualify you if annual profit is strong and consistent with prior years.
Yes, but DSCR loans often make more sense for investment properties. P&L programs are designed for primary residences and second homes where personal income matters.
Yes. Many lenders let you combine self-employment income verified by P&L with traditional W-2 income from a co-borrower to strengthen the application.
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.