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Profit & Loss Statement Loans in Dos Palos
Dos Palos sits in California's agricultural heartland. Many borrowers here run farms, ag services, or small businesses that write off substantial income.
Standard W-2 documentation doesn't capture what self-employed earners actually bring home. P&L loans solve that disconnect by qualifying you on business profit instead of taxable income.
You need a CPA-prepared profit and loss statement covering 12-24 months. Most lenders require minimum 620 credit and 10-20% down depending on property type.
Your business must show consistent profit. One-year statements work for established businesses; newer ventures typically need two years of P&L history.
Lenders verify your business exists through licenses, bank accounts, and sometimes client contracts. They're confirming revenue, not just reviewing paperwork.
P&L loans are non-QM products. Your local bank won't offer them—you need a broker with access to specialty lenders who underwrite alternative income documentation.
Rates run 1-2% higher than conventional loans because lenders take on more documentation risk. Expect 7-9% depending on credit, down payment, and property type.
Not all non-QM lenders accept P&L statements. Some want bank statements instead. We shop your scenario across multiple investors to find the best fit.
P&L loans work best when your business shows strong profit but you write off everything legally possible. If your tax returns show $40k income but your P&L shows $120k profit, this loan makes sense.
Common mistake: waiting until you're under contract to get your CPA involved. That P&L takes time to prepare correctly. Start the process before you shop for homes.
Merced County appraisals can surprise lenders unfamiliar with rural California. We work with underwriters who understand ag-adjacent properties and don't panic over well water or septic systems.
Bank statement loans are the other major option for self-employed borrowers. They average 12-24 months of deposits instead of using a P&L statement.
Bank statement loans often work better for gig workers or cash-heavy businesses. P&L loans shine when you have clean business financials and a CPA relationship already in place.
DSCR loans don't require personal income verification at all—they qualify based on rental property cash flow. Consider that route if you're buying investment property in Dos Palos.
Dos Palos property values reflect agricultural economics. Appraisers struggle when comparable sales are scarce or properties include commercial farm elements.
Many homes here sit on larger lots or include outbuildings. Make sure your lender underwrites rural properties regularly—not all non-QM investors do.
Seasonal income fluctuations are normal in ag communities. Your P&L should cover a full year to smooth out harvest cycles and show consistent profitability.
Established businesses often qualify with 12 months. Newer ventures or lower credit scores typically need 24 months of consistent profit.
No. Lenders require a licensed CPA signature on the profit and loss statement to ensure accuracy and prevent fraud.
Lenders look at overall profitability across the full P&L period. One down quarter won't disqualify you if annual profit is strong.
Expect 1-2% higher rates. Stronger credit and larger down payments get you closer to the lower end of that range.
Yes, but DSCR loans often make more sense for rentals. They qualify on property cash flow without requiring personal income documentation.
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.