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Profit & Loss Statement Loans in West Hollywood
West Hollywood's condo market and creative economy make P&L loans essential. Business owners, freelancers, and creatives dominate this 1.9-square-mile city.
Traditional income docs fail most self-employed borrowers here. A CPA-prepared profit and loss statement replaces tax returns and pay stubs.
You need 24 months in the same business or industry. Most lenders require 10-20% down and credit scores above 680.
Your CPA prepares a 12- or 24-month P&L showing net income. Lenders use that figure to calculate debt-to-income ratios.
Many programs cap DTI at 45-50%. Strong cash reserves help offset higher leverage or borderline credit.
P&L loans live in the Non-QM space. Big banks don't offer them — you're working with specialized wholesale lenders.
CPA credentials matter. Your accountant must be licensed and in good standing. Some lenders reject bookkeeper-prepared statements.
Rates run 1-2% higher than conventional mortgages. Rates vary by borrower profile and market conditions.
West Hollywood deals close faster when your CPA understands lender requirements. We pre-qualify the P&L format before submission.
Most rejections happen because the business structure doesn't match. Sole props work differently than S-corps or LLCs.
Strong bank balances override weak spots. Six months reserves can offset 720 credit when you need 740.
Bank statement loans use deposits instead of P&Ls. They work when your business shows erratic monthly income or you're newer than 24 months.
1099 loans suit independent contractors with steady clients. P&L loans fit business owners with expenses that reduce taxable income.
DSCR loans skip personal income entirely for investment properties. They analyze rental cash flow instead of your P&L.
West Hollywood condos under $1.5M dominate the market. P&L loans work for primary residences and second homes, not just investment properties.
HOA fees run high in WeHo's full-service buildings. Lenders count those in DTI calculations alongside your mortgage payment.
Parking spots sell separately in many buildings. Lenders won't finance the space — budget $50K-$100K cash if needed.
No. Lenders require a licensed CPA to prepare and sign your profit and loss statement. Bookkeeper statements get rejected during underwriting.
You need 24 months in the same business or industry. Some lenders accept 12 months if you transitioned from related W-2 work.
Yes, but DSCR loans often work better for rentals. P&L loans shine for primary residences and second homes where you live part-time.
Most programs require 680 minimum. Stronger deals start at 700 with 15% down and solid reserves.
They use net profit after expenses. If your 12-month P&L shows $120K net, lenders divide by 12 for $10K monthly income.
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.