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Profit & Loss Statement Loans in Pico Rivera
Pico Rivera's self-employed borrowers get turned down by traditional lenders who won't count business income shown on 1040s. P&L statement loans bypass tax returns entirely.
Most small business owners in Los Angeles County write off expenses to reduce tax liability. That strategy crushes conventional loan approval but works perfectly for P&L programs.
These loans require a CPA-prepared profit and loss statement covering the most recent 12-24 months. No Schedule C analysis. No tax return income calculations.
You need minimum 620 credit, though 660+ gets better pricing. Most lenders want two years in business under the same ownership structure.
Down payment starts at 15% for purchases. Cash-out refinances typically require 20-25% equity. Business must show consistent or growing profit.
Your CPA must be licensed and sign the P&L. Some lenders accept in-house bookkeeper statements with CPA review letter. Self-prepared documents never qualify.
Only 30-40 non-QM lenders in our network offer true P&L programs. Requirements vary wildly — one lender accepts 12 months while another demands 24.
Rate spreads run 1.5-2.5% above conventional loans. Your business structure matters. LLCs and S-corps get better treatment than sole proprietors.
Some lenders average P&L income across months. Others use the most recent quarter only. Shop this carefully if your business has seasonal fluctuations.
P&L loans work best when you show 20-30% more income than your tax returns. Less than that and bank statement loans often price better.
Lenders red-flag sudden profit spikes. If your March P&L shows triple the income of January-February, expect scrutiny. Consistent growth beats volatile jumps.
Get your CPA involved early. Many accountants prepare P&Ls that satisfy IRS standards but fail mortgage underwriting. The format matters as much as the numbers.
Bank statement loans require 12-24 months of business deposits. P&L loans just need your accountant's signature. Choose P&L when your bank statements show irregular deposits.
DSCR loans work for rental properties only. P&L loans work for owner-occupied homes and second homes. You can't use rental income to qualify with P&L programs.
1099 loans require consistent 1099 income from multiple sources. P&L loans handle single-client contractors and business owners with diverse revenue streams equally well.
Pico Rivera's median home prices sit below Los Angeles County averages. That means more borrowers hit conforming loan limits where P&L programs compete directly with conventional pricing.
The city's concentration of small manufacturers and distributors creates perfect P&L borrowers. These businesses carry heavy equipment depreciation that destroys tax return income.
Los Angeles County appraisers process faster than most California markets. P&L underwriting takes 3-4 weeks, so total close time runs 30-35 days in Pico Rivera.
No. Lenders require a licensed CPA signature. Some accept bookkeeper-prepared statements with CPA review letters.
A few lenders accept one year for established business owners starting new ventures. Most require 24 months same ownership.
Yes for identity verification and to confirm business existence. Lenders don't use them for income calculation.
Most average net profit across the statement period. Some weight recent months more heavily than older ones.
Yes. Co-borrower W-2 income gets added at full value. This often strengthens approval odds significantly.
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.