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Profit & Loss Statement Loans in Santa Clarita
Santa Clarita's self-employed population—consultants, contractors, franchise owners—often write off enough expenses that their tax returns don't show the income they actually earn.
P&L loans let your CPA present a real-time snapshot of business performance instead of forcing you to wait two years for tax returns to catch up with your actual cash flow.
You need 12 months of self-employment history, a licensed CPA to prepare your P&L, and credit scores typically above 660.
Lenders verify your business exists through cross-checks: business bank statements, licenses, or 1099s that corroborate the income your CPA is reporting.
Down payments start at 10-15% depending on credit strength and property type. Cash-out refinances usually require 20-25% equity.
Maybe 30 of our 200+ lenders offer true P&L programs. The rest either don't touch non-QM or require bank statements instead.
Each lender handles expense add-backs differently—some let you add depreciation and home office deductions back to income, others cap what they'll recognize.
Rates run 1.5-3 points above conventional depending on credit, down payment, and how aggressively your CPA wrote off expenses in the P&L period.
Most borrowers think any CPA letter works. It doesn't. Lenders want specific formats: month-by-month revenue and expenses, clear business name, CPA license number visible.
I see denials when CPAs list personal expenses in business P&Ls or when the borrower's bank deposits don't remotely match reported revenue.
If your business is newer than 12 months or you recently changed business structures, bank statement loans usually work better than P&L programs.
Bank statement loans calculate income from deposits—easier documentation but often shows lower qualifying income after lenders apply their expense ratios.
P&L loans let your CPA control the narrative. If your actual profit margin is higher than the 50% most bank statement lenders assume, P&L shows more income.
1099 loans work when you have consistent contract income but no business expenses to deduct. Asset depletion makes sense if you have significant liquid reserves but irregular business income.
Santa Clarita's business mix—home-based consultants, entertainment industry contractors, healthcare practitioners—creates income patterns that don't fit W-2 boxes.
Properties in Stevenson Ranch, Valencia, and newer developments often appraise cleanly, which helps offset the risk premium lenders charge on non-QM loans.
Los Angeles County requires additional disclosures on non-QM loans. Your CPA needs to understand that the P&L they prepare will be scrutinized alongside 12 months of business bank statements.
Most lenders want a P&L covering the most recent 12-month period, prepared within 90 days of your loan application. Older statements get rejected.
No. Lenders require a licensed CPA with an active credential. Some accept enrolled agents, but most want a CPA signature and license number on the P&L.
That's a red flag. Lenders expect deposits to support or exceed P&L revenue. Significant gaps usually mean denial or requests for additional documentation.
Usually yes, for context. Lenders want to see you filed returns even if the income shown is lower than your current P&L reflects.
They take your net profit, add back certain non-cash expenses like depreciation, then divide by 12 for monthly qualifying income. Each lender's add-back list differs.
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.