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Profit & Loss Statement Loans in Grass Valley
Grass Valley has a strong self-employed community—from contractors and consultants to small business owners. Traditional lenders want two years of tax returns, which often undercount what you actually earn.
P&L loans let you qualify using income from CPA-prepared statements instead of tax returns. Most of our Grass Valley clients use this when their write-offs tank their taxable income but cash flow stays strong.
You need a licensed CPA or EA to prepare your profit and loss statement. Lenders typically require one or two years of P&L history, depending on your credit and down payment.
Credit scores start at 620, but most approvals happen above 660. Expect 10-20% down for purchases and access to cash-out refinances up to 80% loan-to-value.
Not all non-QM lenders handle P&L loans the same way. Some require two full years of statements while others accept 12-18 months if you've been in business longer.
Rate spreads run 1-2% above conventional loans. Borrowers with 700+ credit and 20% down get pricing closest to agency rates. Shopping across our 200+ lenders can save you half a point or more.
Most Grass Valley self-employed borrowers don't realize they qualify until we review their P&L. If your business shows consistent income but your 1040 looks thin due to depreciation or business deductions, this loan works.
One common mistake: waiting until you find a house to get your CPA involved. Have your P&L prepared before you start shopping so we can pre-approve you accurately and move fast when you find the right property.
Bank statement loans pull income directly from deposits, which works if you don't mix business and personal funds. P&L loans work better when your accountant already tracks business income separately.
1099 loans require income from contract work only. P&L loans handle any self-employment structure—sole proprietor, LLC, S-corp. Asset depletion makes sense if you have investments but inconsistent business income.
Grass Valley's mix of historic homes and newer builds means appraisals sometimes come in tight. P&L loans already carry stricter LTV limits, so budget for a larger down payment if you're buying an older property that needs work.
Nevada County has solid equity values, which helps if you're refinancing. Most lenders treat Grass Valley as standard rural California—no special overlays, but expect full appraisals and standard title work timelines.
No. Lenders require a licensed CPA or enrolled agent to prepare and sign the statement. Most reject bookkeeper-prepared financials even if they're accurate.
Most lenders want 12-24 months of P&L history. Stronger credit and larger down payments sometimes reduce the requirement to one year.
Yes, but DSCR loans usually price better for investment properties. P&L loans make more sense for primary residences or second homes.
Lenders average your P&L income across the required period. One weak year gets blended with stronger months, but sustained declines create problems.
No. Lenders require historical P&L statements showing actual earned income. New businesses under 12 months rarely qualify for P&L 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.