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Profit & Loss Statement Loans in Redondo Beach
Redondo Beach has a strong concentration of self-employed professionals and small business owners who need financing options beyond W-2 verification.
P&L statement loans fill the gap when tax returns show heavy write-offs that don't reflect actual cash flow. This matters in a coastal market where property values demand substantial income documentation.
We see this loan type work particularly well for business owners who've been operating for two years or more with consistent revenue. The CPA-prepared statement carries more weight than bank records alone.
You need two years of self-employment in the same industry. The lender wants to see business continuity, not someone who switched from consulting to real estate last year.
Your CPA must prepare a year-to-date P&L and provide their license number. The statement shows gross revenue minus business expenses to arrive at qualifying income.
Credit scores typically start at 680, though some lenders go to 660. Expect 15-20% down on a purchase and 25% equity on a refinance.
P&L programs vary significantly between non-QM lenders. Some accept quarterly statements while others want year-to-date only.
Rate pricing depends on the strength of your P&L documentation and how long you've been self-employed. Rates vary by borrower profile and market conditions.
We work with lenders who specialize in California coastal properties and understand seasonal business fluctuations. Not every wholesale lender handles P&L loans the same way.
The most common mistake is waiting until you're already in contract to discover your CPA won't prepare the statement. Line this up before you start shopping.
If your business is profitable but your personal tax return shows a loss, this loan makes sense. If both show losses, we need to look at bank statement or asset depletion options instead.
Redondo Beach attracts consultants, contractors, and creative professionals who often write off everything possible. P&L loans let you show income before those write-offs hit.
Bank statement loans pull income from deposits over 12-24 months. P&L loans use CPA-calculated profit from current operations. The difference matters when business improved recently.
If you've been self-employed less than two years, bank statement loans work better. Once you hit that two-year mark, P&L programs often price better.
For investment properties in Redondo Beach, DSCR loans skip income verification entirely and focus on rental cash flow. That's cleaner if the property supports itself.
Redondo Beach sits in a housing market where condos and single-family homes both command premium prices. P&L loans work for either property type.
The concentration of small business owners in the South Bay means local CPAs understand these loan requirements. Your accountant has likely prepared statements for mortgage purposes before.
We see seasonal businesses succeed with P&L loans when the year-to-date statement covers a strong earning period. A surf shop owner applying in October shows better numbers than one applying in March.
No. Lenders require CPA preparation with a valid license number. Self-prepared statements don't meet program guidelines regardless of accuracy.
Most lenders want year-to-date figures no older than 90 days at closing. If you're applying in December, January statements won't work through spring.
That's exactly what P&L loans solve. We qualify you on business income before personal deductions and write-offs appear on your 1040.
Yes. Lenders want two years of personal and business returns to verify self-employment history. They qualify you on the P&L but verify longevity through returns.
You can, but DSCR loans often work better for pure investments. P&L makes more sense for primary residences or second homes in the area.
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.