Loading
Profit & Loss Statement Loans in La Canada Flintridge
La Cañada Flintridge draws business owners, consultants, and professionals who write off everything they can. Your tax returns show $80k, but you live like you earn $400k. That's the gap P&L loans bridge.
This market runs on professional services income — attorneys, medical practices, consultants. Properties here often exceed conventional limits, making traditional income verification a barrier for many self-employed buyers.
You need a CPA-prepared P&L covering 12-24 months. Most lenders want two years in business, 680+ credit, and 20% down. Rates run 1.5-3 points above conventional — usually mid-7s to low 8s.
Business bank statements back up your P&L. Lenders verify deposits match reported revenue. Personal credit still matters, but income calculation focuses on net profit from your CPA's statement.
About 30 of our 200+ lenders offer P&L programs. Each has different CPA requirements — some accept any licensed CPA, others want three years of client history. Rate sheets shift weekly based on what they're seeing in secondary markets.
Most P&L lenders cap at $3M-$4M. For properties above that, we often layer in asset depletion or switch to bank statement programs. The sweet spot is $1M-$2.5M where competition keeps pricing reasonable.
Most borrowers underestimate the CPA relationship requirement. If you used your accountant once for last year's tax prep, that won't fly. Lenders want evidence of an established professional relationship.
Business structure matters. S-corps and LLCs work cleanly. Sole props get more scrutiny. If you're doing $500k gross but taking a $60k salary, be ready to explain your distribution strategy in detail.
Bank statement loans pull directly from deposits — simpler docs but lower approval rates when revenue is lumpy. P&L loans give your CPA room to normalize income, smoothing seasonal swings and one-time expenses.
1099 loans work if contractor income dominates. DSCR loans make sense for investment properties. But for owner-occupied purchases where you control a profitable business, P&L programs typically offer the cleanest path.
La Cañada Flintridge real estate often sits in that $1.5M-$3M range where self-employed buyers hit conventional limits. Your business throws off $300k net, but you wrote off $180k. Traditional underwriting chokes on that math.
Local CPAs familiar with high-net-worth clients understand lender requirements better than general practitioners. We see cleaner approvals when borrowers use CPAs who've prepared P&Ls for mortgage purposes before.
You use your own CPA, but they must be licensed and willing to sign the P&L. Lenders verify the CPA's credentials and may contact them directly during underwriting.
A few lenders go as low as 12 months for strong credits with 25%+ down. Most want 24 months of business history documented through tax filings and bank statements.
They take net profit and add back non-cash expenses like depreciation and amortization. Some lenders average 12 months, others use 24 months depending on program.
Yes. Business statements verify revenue matches the P&L. Personal statements show assets for down payment and reserves, typically 6-12 months of payments.
Work with your CPA to document all income streams and add back legitimate non-cash expenses. If that doesn't close the gap, we look at bank statement or asset depletion programs.
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.