Loading
Profit & Loss Statement Loans in Palmdale
Palmdale's aerospace and tech contractor economy creates a large pool of self-employed professionals who struggle with traditional loan approval. P&L loans skip the two-year tax return requirement that sinks most 1099 earners.
Most Palmdale borrowers using P&L loans are business owners, contractors, or consultants who write off significant expenses. This program lets a CPA calculate your income before those deductions hit your adjusted gross income.
You need a CPA-prepared P&L statement covering 12-24 months, depending on the lender. Credit requirements start at 620, but most approvals happen above 660. Down payment minimums run 10-20% based on your profile.
Lenders verify the CPA's license and may request bank statements to confirm deposits align with P&L income. Business must operate for at least 12 months, though some lenders require two years of operation history.
Only non-QM lenders offer P&L programs. Rates run 1-2% higher than conventional loans due to the non-qualified mortgage designation. We shop 50+ non-QM lenders to find pricing overlays that fit your documentation.
Some lenders accept year-to-date P&L statements for recent self-employment transitions. Others require full-year statements. The CPA must be licensed and cannot be related to you or your business partners.
P&L loans work best when your business shows strong income but your tax returns don't reflect it. If you already file clean tax returns showing high adjusted gross income, a conventional loan will beat P&L pricing every time.
We see Palmdale contractors combine P&L documentation with 12-month bank statement programs when their CPA statements don't cover the full lookback period. Lenders price these hybrid deals case-by-case.
Bank statement loans require 12-24 months of personal or business bank statements but skip the CPA requirement. That program works if you lack a CPA relationship or recently started your business.
1099 loans use your 1099 forms directly without CPA preparation, but lenders apply income calculation formulas that often reduce qualifying power. P&L loans give your CPA control over how income is presented.
Palmdale's median home prices fall below coastal LA County areas, making P&L loans accessible without hitting jumbo thresholds. Most purchases stay within conforming loan limits even with lower down payments.
Local contractors working on Edwards Air Force Base projects or aerospace contracts often have lumpy income patterns. P&L statements smooth those fluctuations better than month-to-month bank statement reviews.
Yes, but they must be a licensed CPA with an active credential. Lenders verify CPA licenses directly and the preparer cannot be related to you or your business partners.
Most lenders require 12-24 months depending on the loan amount and property type. Shorter lookback periods exist for established businesses with strong financials.
Some lenders request tax returns to verify they were filed but don't use them for income calculation. Others skip tax returns entirely if the P&L and CPA letter meet underwriting standards.
You won't qualify for P&L programs yet. Bank statement loans or asset depletion programs may work if you have significant cash reserves or investment accounts.
Expect rates 1-2% higher than conventional mortgages. Rates vary by borrower profile and market conditions, with better pricing for higher credit scores and larger down payments.
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.