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Profit & Loss Statement Loans in Bell Gardens
Bell Gardens sits in southeast LA County where small business ownership runs deep. P&L statement loans work here because many borrowers run retail shops, contracting businesses, or service companies with legitimate income that doesn't show on tax returns.
Most self-employed borrowers in this market write off everything they can for tax purposes. That creates low taxable income but strong actual cash flow. P&L loans bridge that gap when a CPA can document what you really earn.
You need a CPA-prepared P&L statement covering 12-24 months. The CPA must be licensed and provide their credentials. Most lenders want to see two years in business, though some accept one year with strong financials.
Credit requirements typically start at 660, sometimes 680. Down payment runs 10-20% depending on the lender and your credit profile. Debt-to-income ratios max out around 50% based on P&L income.
P&L programs vary wildly between non-QM lenders. Some accept quarterly P&Ls while others demand year-end statements. Rate spreads can hit 150 basis points between the most and least aggressive programs.
This is where broker access matters. We shop your file across lenders who price P&L loans differently based on business type, industry, and documentation strength. One lender might love restaurant owners while another won't touch them.
The CPA relationship makes or breaks these deals. If your CPA won't prepare a P&L separate from tax returns, find one who will. The statement needs specific formatting that lenders accept—your CPA should know the mortgage game or learn fast.
Business owners often assume bank statement loans work better because they seem simpler. Wrong. If you have a CPA anyway, P&L loans usually price better and require less documentation than 12 or 24 months of bank statements.
Bank statement loans analyze deposits but don't account for business expenses cleanly. P&L loans let your CPA show gross revenue minus legitimate costs. That usually results in higher qualifying income.
1099 loans work if your income comes through 1099 forms, but many business owners take distributions or pay themselves irregularly. Asset depletion makes sense if you have major reserves but little documented income. P&L loans sit between those extremes.
Bell Gardens property values support P&L loan amounts well. Most homes fall within conforming limits, but non-QM programs don't cap at $806,500 anyway. You can finance properties beyond conventional limits using the same P&L documentation.
Business owners here often purchase multi-family properties or mixed-use buildings. P&L loans work for those too, though some lenders treat them as investment property even if you occupy one unit. Know the difference before you apply.
Most lenders want a P&L dated within 90 days of application. Some accept 120 days if your business has seasonal income patterns.
It must be CPA-prepared and signed. Lenders verify the CPA's license directly. Self-prepared statements don't qualify for these programs.
Lenders average income over the full P&L period. Occasional down months don't kill the deal if the overall trend is positive.
Many do, typically three years stepping down. Some lenders offer no-penalty options at a slightly higher rate.
Yes, though rates run higher than owner-occupied. Some lenders require 20-25% down for investment property with P&L documentation.
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.