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Profit & Loss Statement Loans in San Dimas
San Dimas self-employed borrowers hit the same wall: tax returns showing minimal income after write-offs. P&L loans solve this by using your CPA-prepared profit and loss statement instead of tax returns.
This works well in San Dimas where many residents run consulting firms, construction companies, or professional practices. Your real earning power matters more than what you reported to the IRS.
You need a CPA-prepared P&L covering 12-24 months depending on the lender. Credit scores typically start at 680, though some lenders go to 660 with higher rates.
Down payments run 15-20% for most programs. Lenders verify your CPA's credentials and may request business bank statements to confirm the P&L matches actual deposits.
Most conventional lenders won't touch P&L loans. You need a Non-QM lender comfortable underwriting business income without tax returns.
We work with 15-20 lenders who actively fund P&L deals in Los Angeles County. Each has different policies on what industries they'll approve and how they calculate income from your statement.
Get your CPA involved early. Lenders reject P&L statements that don't follow standard accounting practices or show irregular income patterns without explanation.
The best pricing goes to borrowers who've been self-employed for 5+ years in the same industry. Newer businesses pay higher rates regardless of strong income shown on the P&L.
Bank statement loans let you skip the CPA requirement by using 12-24 months of business bank deposits. That route works if you don't have a CPA relationship or need faster turnaround.
DSCR loans make sense for San Dimas investment properties where rental income covers the mortgage. P&L loans work better for primary residences or when you need the income from multiple businesses combined.
San Dimas sits east of LA proper where home values support P&L loan amounts without hitting jumbo territory. Most properties here fall within conforming loan limits where Non-QM pricing stays competitive.
The city's mix of established professionals and business owners creates steady demand for these programs. Lenders familiar with Los Angeles County understand income volatility in consulting and contracting businesses common here.
Yes, they must be a licensed CPA or EA in good standing. Lenders verify their license number and some require the CPA to have prepared your statements for at least one full year.
Most lenders want 24 months minimum. A few will go to 12 months if you worked in the same industry as a W-2 employee before going self-employed.
They typically average 12-24 months of net profit. Some add back depreciation and one-time expenses, but each lender has different policies on what gets added back.
P&L loans run 1.5-3% higher than conventional rates. Your exact rate depends on credit score, down payment, and how long you've been self-employed.
Most lenders request them to verify you filed, but they don't use the income shown. Some programs skip tax returns entirely if your credit and down payment are strong enough.
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.