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Profit & Loss Statement Loans in Los Angeles
Los Angeles runs on entrepreneurship. From entertainment industry freelancers to tech startups to restaurant owners, traditional W-2 documentation doesn't capture real income.
P&L statement loans solve the self-employed borrower's core problem: qualifying based on what your business actually makes, not what you report to the IRS after deductions.
You need a CPA-prepared profit and loss statement covering 12-24 months. The CPA must be licensed and unrelated to you—your cousin with a tax prep business won't work.
Most lenders require 640+ credit and 15-20% down payment. Expect rates 1-2% higher than conventional loans. That premium buys income flexibility most self-employed borrowers can't get elsewhere.
Not every non-QM lender offers P&L programs. Some require bank statements instead. Others cap loan amounts lower than Los Angeles purchase prices demand.
We work with 15+ lenders who actively fund P&L loans in LA County. Each has different appetites for loan size, credit scores, and business types. A film producer gets underwritten differently than a contractor.
Your CPA matters more than you think. Lenders scrutinize P&L presentation quality. Sloppy formatting or incomplete expense categories trigger additional documentation requests that delay closing.
Most self-employed borrowers qualify for higher amounts using P&L versus tax returns. We see 30-40% income lift on average. That difference matters when LA median purchase prices demand maximum buying power.
Bank statement loans are more common and sometimes offer better rates. They use 12-24 months of business deposits to calculate income. P&L loans work better when your revenue is consistent but deposits are irregular.
1099 loans require simpler documentation but only work for certain contractor arrangements. Asset depletion loans skip income verification entirely but require substantial liquid assets most borrowers don't have.
Los Angeles self-employed borrowers span every industry. Entertainment freelancers face seasonal income that P&L statements can smooth out better than month-to-month bank deposits.
Property prices across LA neighborhoods vary wildly. A P&L loan might work in El Sereno but hit lender loan limits in Pacific Palisades. Know your lender's maximum before shopping neighborhoods.
Yes, if they're a licensed CPA and unrelated to you. Family members or unlicensed bookkeepers won't qualify.
Most lenders require 12-24 months. Longer history helps with lower rates and better terms.
You'll need two years self-employment history. The business can be new if you have prior industry experience.
Yes, though DSCR loans often make more sense. They ignore personal income entirely and qualify on rental cash flow.
Expect 1-2% above conventional rates. Strong credit and larger down payments get better pricing.
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.