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Industry sits at the commercial crossroads of LA County. Self-employed business owners and contractors here need mortgages that match how they actually report income.
Traditional W-2 documentation doesn't work when your CPA writes off most of your taxable income. P&L loans let you qualify on business revenue instead of tax returns.
Profit & Loss Statement Loans in Industry
You need a CPA-prepared P&L covering 12-24 months of business operation. Most lenders want credit scores above 680 and down payments starting at 15%.
Your business must show consistent revenue over the statement period. Lenders calculate income by averaging monthly profit after business expenses but before personal write-offs.
P&L loans come from Non-QM lenders who price risk individually. Rates run 1-2% higher than conventional mortgages because underwriting relies on financial statements rather than verified tax returns.
Not every broker has access to P&L programs. We work with 200+ wholesale lenders who specialize in business owner financing across different industries and business structures.
Most self-employed borrowers first try conventional loans and get denied because tax returns show minimal income. That's when P&L financing makes sense — your accountant built your tax strategy around business deductions, not mortgage qualification.
The strongest applications show steady month-to-month revenue without wild swings. Lenders scrutinize seasonal businesses more carefully and may average income differently or require larger reserves.
Bank statement loans use 12-24 months of deposits to calculate income. P&L loans use profit after expenses. Which works better depends on your business cash flow and how you pay yourself.
1099 loans work if you receive 1099 income but don't own the business. Asset depletion works when you have substantial liquid assets but irregular business income. We compare all options before recommending one.
Industry homes typically serve buyers working in the surrounding industrial corridor. Many are self-employed logistics operators, manufacturers, or wholesale distributors who need Non-QM financing.
Properties here vary from residential pockets to mixed-use situations. Some lenders restrict P&L loans based on property type or proximity to commercial zones. Know your property classification before applying.
Your CPA must hold an active license and sign the statement. Most lenders verify the CPA's credentials directly through state boards.
Most programs require two years of business history. Some lenders accept one year if you worked in the same industry previously as a W-2 employee.
Lenders average your monthly net profit over the statement period. They add back non-cash expenses like depreciation but subtract owner distributions in some cases.
Occasional losses get averaged into your total income calculation. Consistent monthly losses or declining revenue trends will hurt qualification or stop approval entirely.
Rates vary by borrower profile and market conditions. P&L and bank statement programs price similarly since both are Non-QM products with comparable risk profiles.