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Profit & Loss Statement Loans in Glendale
Glendale's business owners face a financing gap. Your tax returns show minimal income because you write off expenses.
P&L statement loans solve this problem. They use a CPA-prepared profit and loss statement to qualify you instead of tax returns.
This matters in Glendale, where self-employed borrowers make up a significant portion of the buyer pool. Traditional lenders reject profitable business owners who optimize for tax efficiency.
These loans work for properties up to $3 million in Los Angeles County. That covers most single-family homes and condos in Glendale's competitive market.
You need a CPA to prepare your P&L statement. It must cover the most recent 12 months of business activity.
Minimum credit score is 680. Down payment starts at 20% for owner-occupied properties, 25% for investment properties.
Your CPA must be licensed and in good standing. Lenders verify this directly with state licensing boards.
Most programs require two years of self-employment history. Some lenders accept one year if your business shows strong profitability and cash reserves.
Expect rates 1.5% to 2.5% above conventional loans. This premium pays for the additional underwriting risk lenders take without tax returns.
Not all non-QM lenders offer P&L programs. We work with about 30 lenders who do, each with different overlays on credit, reserves, and property types.
Some lenders allow cash-out refinances on P&L programs. Others restrict you to purchase or rate-term refinances only.
Closing timelines run 30 to 45 days. The CPA verification process adds time compared to standard loans.
Get your CPA involved early. Many business accountants have never prepared a P&L for mortgage purposes and need guidance on lender formatting requirements.
Your P&L needs to match your business bank statements. Lenders cross-check deposits against reported revenue, and discrepancies kill deals.
Reserve requirements surprise borrowers. Most programs want 6 to 12 months of housing payments in liquid assets after closing.
If your P&L shows breakeven or small losses, this loan won't work. Lenders need to see consistent profitability to approve your file.
Bank statement loans offer more flexibility. They pull income directly from your business account deposits without requiring a CPA.
1099 loans work if you receive contractor income but don't own the business. They use your 1099 forms instead of a full P&L statement.
DSCR loans ignore your personal income entirely. They qualify you based on rental property cash flow, which works for Glendale investment properties.
P&L loans make sense when your CPA relationship is strong and your business shows clean profitability. Otherwise, bank statement programs typically close faster.
Glendale's housing stock includes many condos and townhomes. Some P&L lenders restrict condo financing or require higher down payments on attached properties.
Property values in Glendale often exceed $1 million. You'll need strong business income documentation to qualify for these purchase prices using P&L statements.
Los Angeles County transfer taxes add to your closing costs. Factor these into your cash-to-close calculations when comparing loan programs.
Glendale's Armenian business community frequently uses P&L loans. Many local CPAs understand the mortgage application requirements well.
It must be a licensed CPA. Lenders verify credentials with state licensing boards and reject P&L statements from unlicensed preparers.
Most lenders require two years of self-employment. A few accept one year with strong profitability and significant cash reserves.
No. P&L statement loans specifically avoid tax returns. You provide the CPA-prepared P&L and business bank statements instead.
Yes, but lenders typically require 25% down for 2-4 unit properties. DSCR loans often work better for investment properties.
They use your net profit after expenses. Some lenders add back depreciation and one-time costs to increase qualifying income.
Lenders look at the full 12-month period. Overall profitability matters more than month-to-month fluctuations in your business 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.