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Profit & Loss Statement Loans in Paramount
Paramount's mix of small business owners and independent contractors creates steady demand for P&L loans. Traditional W-2 verification doesn't work when you write off expenses or run income through an LLC.
Most conventional lenders reject self-employed borrowers who show low taxable income. P&L loans bypass tax returns entirely, using a CPA-prepared profit and loss statement to prove earning capacity.
This loan type works for contractors, consultants, and business owners with strong cash flow but heavy write-offs. You need a licensed CPA to prepare the P&L—no DIY spreadsheets.
Most lenders require 640+ credit and 10-20% down. You need at least 12 months of self-employment history, often 24 months for the strongest terms.
Your CPA prepares a year-to-date P&L showing gross revenue and business expenses. Lenders use the net profit figure to calculate your qualifying income, not what you reported to the IRS.
Expect rates 1-2% higher than conventional loans. The higher cost reflects increased lender risk when bypassing tax return verification.
P&L loans live in the non-QM space. You won't find them at Wells Fargo or Chase—only specialty lenders who underwrite these programs.
Each lender has different P&L requirements. Some accept quarterly statements, others want year-to-date only. Some allow business bank statements as secondary verification, others rely solely on the P&L.
Shopping across multiple non-QM lenders matters here. One might price your deal 0.5% lower based on industry type or debt-to-income calculation method.
Get your CPA involved early. A poorly formatted P&L kills deals even when the income supports approval. Lenders want specific line items and professional presentation.
The biggest mistake is using a bookkeeper instead of a licensed CPA. Lenders verify CPA credentials—if the preparer isn't properly licensed, you're starting over with a new P&L.
Business owners with multiple LLCs or partnerships face stricter scrutiny. Plan for extra documentation showing ownership percentages and how cash flows through entities.
Bank statement loans offer an alternative using 12-24 months of business deposits. If your P&L shows inconsistent monthly income, bank statements might qualify you for more.
1099 loans work for independent contractors with steady client relationships. The documentation is simpler, but you need consistent year-over-year 1099 income without major gaps.
DSCR loans skip personal income entirely for investment properties. If you're buying a rental in Paramount, the property's cash flow might be an easier path than proving business income.
Paramount's housing stock includes many properties under $700K. Lower purchase prices mean smaller loan amounts, which some non-QM lenders prefer since they carry less risk.
Self-employed borrowers here often work in logistics, retail, or construction. Lenders view these industries differently—stable contractor income gets better pricing than seasonal retail revenue.
Mixed-use properties are common in Paramount. If you're buying a property with commercial space where you run your business, expect extra underwriting around zoning and income allocation.
Most lenders want year-to-date P&L no older than 90 days. If you're applying in March, a December year-end statement usually works.
Yes, and that's actually ideal. Lenders prefer continuity between your CPA preparer and tax filing history.
Some lenders accept 12-month minimums, but rates improve significantly at 24+ months. Expect higher pricing with limited history.
Usually no. Most use the most recent 12-month period only, unlike tax return loans that average two years.
Yes, but expect more scrutiny. Lenders will separate residential versus commercial income and may limit loan-to-value.
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.