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Profit & Loss Statement Loans in Marina
Marina's market attracts self-employed professionals who struggle with traditional mortgage requirements. P&L statement loans let you qualify using business income that wouldn't show up on tax returns.
This matters in Monterey County where many borrowers run legitimate businesses but write off substantial expenses. Most conventional lenders reject profitable business owners who appear broke on paper.
You need a CPA or licensed accountant to prepare your profit and loss statement covering 12-24 months. The lender calculates qualifying income from your bottom-line profit, not what you reported to the IRS.
Minimum credit scores run 680-700 depending on the lender. Down payment starts at 10% but expect 15-20% for competitive rates. You'll need business documentation proving you've operated for at least two years.
Most retail banks won't touch P&L loans. You need access to non-QM wholesale lenders who specialize in self-employed financing. Each lender calculates income differently—some average 24 months, others weight recent performance.
Rate premiums run 50-150 basis points above conventional loans. Rates vary by borrower profile and market conditions. Shopping multiple non-QM lenders matters because underwriting standards differ significantly between programs.
Half my Marina clients could qualify conventionally if they filed different tax returns. But that ship sailed. P&L loans let you use real business income without amending three years of returns.
The biggest mistake is assuming your accountant knows mortgage requirements. CPAs prepare P&Ls for many purposes. Tell yours upfront this is for mortgage qualification—the format and detail level matter. Sloppy preparation kills deals.
Bank statement loans work better if your accountant isn't responsive or charges high fees for P&L preparation. You submit 12-24 months of business bank statements instead. Lenders calculate income from deposits.
P&L loans typically qualify you for more house because accountants can present income more favorably than raw bank deposits. But bank statement programs accept lower credit scores and have simpler documentation in most cases.
Marina's proximity to military installations means many self-employed borrowers work as defense contractors or consultants. These income streams work perfectly for P&L financing despite irregular payment schedules that confuse traditional underwriting.
Property values in Marina run lower than neighboring Monterey or Seaside. This helps self-employed borrowers meet loan-to-value requirements with smaller down payments. Your business income goes further here than in premium coastal markets.
No. Lenders require preparation by a licensed CPA or certified accountant. Self-prepared statements don't meet underwriting standards for non-QM programs.
Most lenders average your net profit over 12-24 months. Some weight recent months more heavily or allow addbacks for legitimate business expenses like depreciation.
That's exactly why P&L loans exist. Lenders use the P&L income, not tax return income. Your write-offs don't hurt qualification.
No. Sole proprietors, LLCs, S-corps, and C-corps all qualify. Structure matters less than documented business history and P&L showing consistent profit.
Yes. Most lenders allow you to combine self-employed P&L income with a co-borrower's traditional W-2 income for qualification purposes.
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.