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Profit & Loss Statement Loans in San Fernando
San Fernando's self-employed population needs alternatives to traditional income verification. Tax returns show write-offs that reduce taxable income but hurt mortgage approval.
P&L statement loans use current business earnings instead of two-year tax averages. This works for business owners whose recent profit doesn't match what they reported to the IRS.
You need a business operating for at least two years with a licensed CPA preparing your P&L statement. Most lenders require 620-640 minimum credit score and 15-20% down payment.
Your CPA must be licensed and in good standing. The P&L covers recent months of business activity, typically the most recent quarter or year-to-date. Lenders verify your business exists through tax IDs and bank statements.
Most conventional lenders don't offer P&L programs. You're working with non-QM wholesale lenders who specialize in self-employed borrowers with complex income situations.
Each lender has different P&L requirements. Some accept year-to-date statements while others want trailing 12 months. Rate pricing varies by 0.5-1.5% depending on which lender fits your specific business structure.
Business owners making $200K who write everything off and show $60K taxable income can't get conventional approval. P&L loans solve this by using actual business revenue minus reasonable expenses.
The key is CPA credibility. Your accountant needs proper licensing and can't have tax liens or suspended credentials. We've seen deals fall apart because borrowers used unlicensed tax preparers.
Bank statement loans pull deposits from 12-24 months of statements. P&L loans use a single recent financial snapshot. Choose bank statements if your revenue fluctuates or you need simpler documentation.
1099 loans work for independent contractors but require the full 1099 forms. P&L programs suit business owners with employees, multiple revenue streams, or complex expense structures that don't fit 1099 formats.
San Fernando properties include single-family homes and small multi-units in Los Angeles County. P&L loans work for both primary residences and investment properties, though investor rates run higher.
Working with Los Angeles County CPAs familiar with local business tax requirements helps. Out-of-state accountants sometimes format P&Ls in ways California non-QM lenders don't accept.
Your CPA must hold an active license in good standing. Lenders verify credentials directly and reject statements from unlicensed preparers or enrolled agents.
Yes, though rates run 0.5-1% higher than primary residences. Some lenders require larger down payments for investment purchases using P&L documentation.
Most lenders want statements dated within 90 days of loan application. Year-to-date or trailing 12-month formats work depending on the lender's requirements.
Lenders typically annualize your income from the P&L period. A 6-month statement gets doubled, smoothing seasonal fluctuations into annual earning estimates.
Many non-QM lenders include 2-3 year prepayment penalties. Some offer no-penalty options at slightly higher rates—worth considering if you plan to refinance soon.
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.