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Profit & Loss Statement Loans in Industry
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.
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.
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.