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Profit & Loss Statement Loans in Claremont
Claremont's professional class includes business owners, consultants, and independent practitioners who write off legitimate business expenses. Those deductions crater your tax returns but don't reflect actual cash flow.
P&L statement loans let you qualify on what your business actually generates, not what you report to the IRS. We work with CPAs who prepare compliant statements that showcase real income, not artificially lowered AGI.
You need a CPA-signed P&L covering 12-24 months of business operations. Most lenders want to see at least two years in business, though some accept one year with strong financials.
Credit minimums sit around 680, and you'll put down 15-20% for owner-occupied properties. Investment properties typically require 25% down. Debt-to-income ratios run looser than conventional—often up to 50%.
P&L loans live in non-QM space, so you won't find them at Wells Fargo or Chase. We access 40+ specialty lenders who price these deals competitively when your profile is clean.
Rates run 0.75-2% above conventional depending on credit, down payment, and reserves. Some lenders care more about cash reserves than credit score. Others weigh business type heavily—professional services get better pricing than construction or restaurants.
Half the battle is working with a CPA who understands mortgage underwriting. Your tax preparer wants to minimize liability. Mortgage lenders need to see sustainable income. Those goals conflict unless your CPA knows what underwriters scrutinize.
We see borrowers get denied because their P&L shows irregular monthly income or excessive one-time expenses. Clean, consistent revenue patterns matter more than gross numbers. A $300K business with steady monthly income beats a $500K business with lumpy cash flow.
Bank statement loans verify income through deposits, so you avoid the CPA requirement entirely. But P&L loans typically offer better rates because CPA verification carries more weight with underwriters.
If you're a 1099 contractor without business expenses, a 1099 loan might price better. For investment properties, DSCR loans ignore personal income completely—they underwrite the rental cash flow instead of your business income.
Claremont sits in the Claremont Unified School District, which pulls buyers willing to stretch budgets. P&L loans give self-employed parents access to that market without restructuring their entire business tax strategy.
The Claremont Colleges create demand from faculty who consult or run side businesses. We've closed P&L loans for professors with research consulting income and physicians with private practices who need the tax deductions but still want competitive financing.
No. Lenders require a CPA or licensed tax professional to prepare and sign the P&L statement. Self-prepared documents don't meet underwriting standards.
Most lenders want 12-24 months. Two years is standard, but some accept one year if you have strong credit and cash reserves.
Some lenders require returns to verify business exists. Others accept P&L alone. It depends on the lender's appetite and your credit profile.
You typically need one year minimum of business operations. Startups under 12 months rarely qualify for P&L programs.
Yes. If you have part-time W-2 employment alongside self-employment, lenders can count both income sources for qualification.
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.