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Profit & Loss Statement Loans in Calabasas
Calabasas has a dense concentration of self-employed professionals—entertainment executives, producers, consultants, and business owners who write off everything. Traditional W-2 income verification doesn't work when your tax returns show minimal income but you're buying a $2M property.
P&L statement loans let you qualify using current business income instead of tax returns. A CPA prepares a profit and loss statement covering the last 12-24 months. Lenders use that to calculate your debt-to-income ratio.
You need 10-20% down depending on loan amount and credit profile. Minimum credit score is 620, but most lenders want 660+ for the best pricing. Your business must be operating for at least two years with a CPA willing to prepare the P&L statement.
The CPA signs off that the P&L accurately reflects business performance. Lenders verify the CPA's license and may request supporting bank statements. Loan amounts go up to $3M in most cases, higher with additional documentation.
P&L statement loans come from non-QM lenders exclusively. Rates run 1-2% higher than conventional loans. Rates vary by borrower profile and market conditions. The pricing reflects the fact that lenders can't verify income through traditional employment documentation.
Not all non-QM lenders accept P&L statements. Some require bank statements instead. We work with about 15 lenders who actively fund P&L loans in Los Angeles County. Each has different overlays on business type, income calculation methods, and documentation standards.
P&L loans work best when your business income is stable or growing but you maximize tax deductions. If your income fluctuates wildly month to month, bank statement loans usually get better results. The P&L smooths income over 12-24 months while bank statements show actual deposits.
Get your CPA involved early. Some CPAs refuse to prepare P&Ls for mortgage purposes. Others charge $500-2000 depending on complexity. The P&L must follow a specific format—your CPA needs to know what lenders expect or you'll waste time on revisions.
Bank statement loans use 12-24 months of business bank deposits to calculate income. Lenders average deposits and apply an expense factor—typically 25-50%. P&L loans use your actual business profit instead of making assumptions about expenses.
If your business has high gross deposits but also high expenses, P&L loans usually qualify you for more. If deposits are lower but profit margins are strong, the result is similar. Bank statement loans close slightly faster since there's no CPA coordination required.
Calabasas properties often exceed conforming loan limits, pushing buyers into jumbo territory. P&L statement loans in the jumbo space require 15-20% down minimum. Lenders get stricter on reserves—expect to show 12-18 months of housing payments in liquid assets.
The city's entertainment industry concentration means lenders here see P&Ls from production companies, talent agencies, and consulting firms regularly. Your loan officer should understand how episodic income, project-based revenue, and industry-specific write-offs affect qualification.
No. Lenders require a CPA to prepare and sign the P&L statement. Self-prepared statements don't meet documentation requirements.
Most lenders want 12-24 months. Two years of P&L history gives the strongest qualification with the most lenders.
Business structure doesn't matter. The CPA prepares the P&L based on your ownership percentage in the business.
Some lenders require tax returns to verify business existence. Others accept just the P&L and CPA license verification.
Yes, if you have ownership in multiple businesses. The CPA prepares separate P&Ls and lenders combine the 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.