Loading
Profit & Loss Statement Loans in Coronado
Coronado's high-value real estate attracts business owners who write off income aggressively. Standard W-2 loan programs punish these borrowers by using artificially low taxable income.
P&L statement loans solve this by letting CPAs certify your actual business income. No tax returns. No underwriter second-guessing your write-offs.
You need one year of self-employment in the same industry. Your CPA prepares a P&L covering the most recent 12 months, then signs off on its accuracy.
Lenders want 680+ credit and 20% down minimum. Some accept 15% down with reserves. The P&L must show positive net income after business expenses.
About 30 non-QM lenders in our network accept P&L documentation. Rate spreads vary 0.75% to 2.5% between the best and worst pricing for identical scenarios.
Some lenders cap loan amounts at $2 million. Others go to $4 million but require additional reserves. A few add overlays like requiring business bank accounts or demanding specific CPA certifications.
Most Coronado buyers using P&L loans are legitimately profitable but carry high write-offs. Contractors, consultants, and medical professionals fit this profile perfectly.
Lenders scrutinize CPAs. Use someone licensed, established, and independent. Your brother-in-law who does taxes part-time will get your file kicked. I've seen it happen twice this year.
Bank statement loans require 12-24 months of statements and let lenders apply expense ratios. P&L loans let your CPA define expenses, which often produces higher qualifying income.
The trade-off: P&L loans usually price 0.25% to 0.50% higher than bank statement programs. But if your actual P&L is stronger than your bank deposits suggest, you come out ahead.
Coronado properties frequently exceed conforming loan limits, pushing buyers into jumbo territory. P&L loans work in jumbo space but require stronger reserves at higher price points.
Island properties with HOA fees and Mello-Roos add to debt ratios. Lenders typically allow 50% DTI maximum on P&L loans. Budget those recurring costs carefully when calculating approval odds.
They need an active license and professional liability insurance. Most lenders reject EAs and unlicensed preparers for P&L certification.
No. Lenders require 12 full months minimum in the same line of business. Some accept 24 months if you switched industries recently.
You won't qualify. Lenders need positive net income on the P&L statement they're underwriting, regardless of prior year performance.
Expect $500 to $1,500 depending on business complexity. Some CPAs won't certify unless they prepared your books all year.
Yes, but most lenders require 25% down on non-owner occupied purchases. DSCR loans often price better for pure investment scenarios.
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.