Loading
Profit & Loss Statement Loans in Whittier
Whittier's business community includes independent contractors, consultants, and small business owners who write off expenses aggressively. Traditional lenders reject these borrowers because their tax returns show minimal taxable income.
P&L statement loans let you qualify using a CPA-prepared profit and loss statement instead of tax returns. We see this work for borrowers whose actual business income exceeds what appears on their 1040.
You need a licensed CPA to prepare your P&L statement covering the most recent 12-24 months. Lenders won't accept statements from unlicensed bookkeepers or self-prepared documents.
Most lenders want 620+ credit and 10-20% down. Some allow 600 credit with 25% down. You must show self-employment history of at least two years in the same industry.
About 30 of our 200+ wholesale lenders offer P&L programs. Rate spreads run 0.50-2.00% above conventional depending on credit and down payment.
Some lenders accept quarterly P&L statements. Others require year-to-date plus prior year. A few will blend P&L with partial tax returns if you've had one strong year followed by write-offs.
We see P&L loans work best for borrowers earning $150K+ with clean credit who simply can't document income traditionally. The CPA letter carries weight but lenders still calculate debt-to-income ratios conservatively.
If your business shows losses or break-even on the P&L, this loan won't work. Consider bank statement loans instead—they show actual deposits without requiring profitability on paper.
Bank statement loans review 12-24 months of deposits and apply a percentage as qualifying income. P&L loans use your CPA's calculation of net profit. Bank statements often qualify higher amounts for deposit-heavy businesses.
1099 loans work if you receive contractor income but don't have business expenses to write off. Asset depletion fits borrowers with significant liquid assets but unpredictable income.
Whittier's mix of established neighborhoods and commercial corridors means we see P&L loans for both primary residences and investment properties. DSCR loans work better for pure investment plays with rental income.
Los Angeles County has high property values. Many Whittier borrowers combine P&L income verification with jumbo loan amounts. Make sure your CPA shows enough net profit to support the debt ratio on higher purchase prices.
No. Lenders require a licensed CPA. Enrolled agents and unlicensed bookkeepers don't meet underwriting standards for this program.
That's the exact scenario P&L loans solve. The CPA statement reflects actual profitability before tax strategies that create paper losses.
Lenders typically use net profit after expenses. Some allow add-backs for depreciation and one-time costs, but your CPA must justify those adjustments.
Most carry 2-3 year prepayment penalties typical of non-QM loans. A few lenders offer penalty-free options at higher rates.
Yes. Cash-out refinances work the same as purchases. Rate-and-term refinances often get better pricing than cash-out transactions.
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.