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Blythe's economy runs on small business owners. Agricultural operators, logistics contractors, and independent service providers dominate the workforce. Most write off everything possible, leaving their 1040s showing minimal taxable income.
Traditional lenders reject these borrowers outright. Your tax return shows $40K, but you clear $120K. P&L statement loans solve this by using CPA-prepared financials instead of tax returns. The income you actually earn matters, not what you report to the IRS.
Profit & Loss Statement Loans in Blythe
You need a CPA to prepare your P&L statement covering at least 12 months of business operations. That CPA must be licensed and actively practicing. Handwritten statements or self-prepared QuickBooks exports won't qualify.
Credit minimums typically start at 680, though some lenders go to 660. You'll need 15-20% down for purchases. Cash-out refinances max out around 75% loan-to-value. Your business must show consistent revenue across the statement period.
Local decision guide
Use this guide to connect profit & loss statement loans eligibility, lender expectations, and local market factors before comparing payment options in Blythe.
Blythe's economy runs on small business owners. Agricultural operators, logistics contractors, and independent service providers dominate the workforce. Most write off everything possible, leaving their 1040s showing minimal taxable income.
Traditional lenders reject these borrowers outright. Your tax return shows $40K, but you clear $120K. P&L statement loans solve this by using CPA-prepared financials instead of tax returns. The income you actually earn matters, not what you report to the IRS.
You need a CPA to prepare your P&L statement covering at least 12 months of business operations. That CPA must be licensed and actively practicing. Handwritten statements or self-prepared QuickBooks exports won't qualify.
Only specialized non-QM lenders offer P&L programs. Your local bank won't touch this. Wells Fargo and Chase don't offer these loans. We work with about 25 lenders who actually close P&L deals.
Rate premiums run 1-2% above conventional loans. Rates vary by borrower profile and market conditions. The fewer months of P&L you have, the higher the rate. Expect 7-9% range currently, depending on credit and down payment.
Half my Blythe clients write off their truck, home office, meals, and mileage. Their Schedule C shows $35K after deductions. Meanwhile, they bank $100K. P&L loans exist for exactly this situation.
Get your CPA involved early. Some preparers won't sign P&L statements because they don't understand mortgage requirements. Find one who does this regularly. The statement format matters. Lenders reject sloppy financials immediately.
Bank statement loans offer an alternative using 12-24 months of business deposits. Those work when your P&L doesn't show enough net profit. Asset depletion loans use investment accounts if you're cash-rich but income-light.
DSCR loans work better for rental property purchases. They ignore your income entirely and qualify based on rent. 1099 loans require less documentation but limit you to contract income only.
Blythe property values stay modest compared to western Riverside County. That works in your favor. Lower loan amounts mean easier approval. Lenders care less about collateral risk on a $250K home than a $750K one.
Agricultural and trucking businesses dominate here. Lenders understand seasonal income fluctuations for these industries. Your P&L can show uneven monthly revenue as long as the annual total supports the mortgage payment.
No. Lenders require a licensed CPA to sign and certify the statement. Self-prepared financials get rejected immediately, even if accurate.
Most lenders use your net profit from the P&L, divided by statement months, times twelve. Some average multiple years if you provide 24 months of history.
Seasonal fluctuations are fine. Lenders look at net annual profit. Consistent monthly losses across the full statement period kill your approval.
Most lenders want one year of business returns to verify the business exists. They use the P&L for income, not the Schedule C.
Yes. W-2 income gets added at full value. Your P&L income gets calculated separately. This often helps borrowers qualify for more.
Expect 45-60 days from application to close. Rural appraisals add time. Lenders scrutinize self-employment income more than W-2 wages.