Loading
Profit & Loss Statement Loans in Madera
Self-employed borrowers in Madera face a common problem. Tax returns show write-offs, not actual cash flow. P&L loans solve this by using CPA-prepared statements instead of two years of tax returns.
Most Madera business owners—contractors, ag consultants, service providers—can qualify with just 12-24 months of P&L documentation. No tax transcripts needed if your income tells a better story on paper than on your 1040.
You need a licensed CPA to prepare your profit and loss statement. Self-prepared financials don't count. Credit scores start at 620, but 680+ gets better pricing. Most lenders want 10-20% down depending on property type.
Your business needs two years of operational history. The P&L shows net income after expenses but before tax deductions. Lenders calculate qualifying income from the most recent 12 or 24 months depending on trends.
P&L programs vary widely between lenders. Some accept declining income if you can explain it. Others require year-over-year growth. A few allow rental property purchases, but most focus on primary residences and second homes.
Rates run 1-2% above conventional loans. That's the cost of flexible documentation. We shop across 30+ non-QM lenders to find programs that match your income pattern and property plans.
Most Madera borrowers don't realize their CPA can prepare a qualifying P&L even if they haven't filed this year's taxes. You don't need completed returns. You need 12-24 months of income documentation showing stable or growing earnings.
Common mistake: waiting until tax season to get the P&L. Get it prepared now. Another miss: assuming one bad month kills the deal. Lenders average your income, so seasonal businesses in ag-related fields can still qualify if annual numbers work.
Bank statement loans use deposits to prove income. P&L loans use profit after expenses. If you run most income through business accounts, bank statements work better. If you have significant expenses that reduce deposits, P&L shows higher qualifying income.
1099 loans only work for contract workers with third-party documentation. P&L loans work for any business structure—sole prop, LLC, S-corp. The flexibility matters when you control multiple income streams or have partners.
Madera's economy runs on ag services, construction, and small business. That means lots of self-employed borrowers with legitimate income that doesn't show on tax returns. P&L loans fit the local market better than traditional documentation.
Property types matter. Single-family homes in established Madera neighborhoods get full program access. Rural properties on larger lots may face restrictions or require bigger down payments. Mixed-use properties typically need DSCR loans instead.
No. Lenders require a licensed CPA to prepare and sign the P&L statement. Bookkeeper-prepared financials don't meet program requirements.
That's exactly what this loan solves. Lenders use the P&L income, not tax return income, to qualify you for the mortgage.
Yes. Most lenders want 2-3 months of business and personal bank statements to verify the P&L reflects actual business activity.
Some lenders allow it, but DSCR loans usually work better for pure investment properties. P&L loans focus on owner-occupied and second homes.
Plan for 3-4 weeks. P&L loans require manual underwriting since they're non-QM products. CPA documentation review adds time compared to automated programs.
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.