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Fullerton has a strong base of self-employed professionals — contractors, consultants, small business owners. Standard W-2 underwriting ignores how they actually earn.
P&L loans use a CPA-prepared profit and loss statement instead of tax returns. That one shift opens the door for borrowers traditional lenders turn away.
620 (typical)
Min Credit Score
CPA P&L Statement
Income Doc
10% (typical)
Min Down Payment
12 or 24 months
P&L Period
Non-QM
Loan Type
Your CPA prepares a 12- or 24-month P&L statement. Lenders use that to verify income — not your Schedule C write-offs that tank your taxable income.
Credit requirements vary by lender. Most want a 620 minimum score. Down payments typically start at 10%, but stronger files can push that lower.
Big banks don't touch P&L loans. This is wholesale non-QM territory — lenders who write their own guidelines outside Fannie and Freddie's rulebook.
Each lender prices risk differently. One might require 24 months of P&L. Another accepts 12. Shopping across lenders isn't optional — it's how you find a workable rate.
The P&L has to be CPA-prepared — not self-prepared. Lenders flag DIY statements fast. Get a licensed CPA to sign off before you apply.
Some lenders cross-reference the P&L against bank statements. If your deposits don't loosely match the P&L income, expect questions. Consistency across documents is key.
Bank statement loans look at 12-24 months of deposits directly. P&L loans summarize that income through an accountant's lens. Both work — the right one depends on your business structure.
1099 loans fit independent contractors with clean income records. Asset depletion fits borrowers with large reserves but low income. P&L loans fit operators who run their books through a CPA.
Orange County housing runs expensive. P&L loans in Fullerton need to support purchase prices that often exceed conventional loan limits — meaning jumbo non-QM territory.
Fullerton's business community spans healthcare, education, and trades. P&L underwriting handles variable monthly income well, which fits most of these industries.
It needs to show gross income, expenses, and net profit for the period. Most lenders want it signed and dated by a licensed CPA.
Yes. That's the point of this program. Tax returns are not required — the P&L replaces them for income verification.
Most lenders require at least two years of self-employment history. Some accept one year with strong compensating factors.
Yes, non-QM loans carry higher rates than conventional. Rates vary by borrower profile and market conditions.
Yes. Several non-QM lenders offer P&L programs above conforming limits. Expect stricter reserves and down payment requirements.
Yes. We have access to 200+ wholesale lenders, including non-QM lenders who specialize in P&L and self-employed programs.
Profit & Loss Statement Loans in Fullerton