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Atherton draws business owners with complex income structures who write off most earnings. Traditional lenders reject these borrowers despite strong cash flow and seven-figure portfolios.
P&L loans solve this problem by using CPA-prepared statements instead of tax returns. Your accountant shows what you actually earn, not what you report to the IRS after deductions.
Profit & Loss Statement Loans in Atherton
You need two years in the same business with a licensed CPA preparing your P&L. Most lenders want 20-25% down and credit scores above 680.
Self-employment must be established and documented. The CPA signs and stamps each statement, verifying income calculations. No tax returns required.
Local decision guide
Use this guide to connect profit & loss statement loans eligibility, lender expectations, and local market factors before comparing payment options in Atherton.
Atherton draws business owners with complex income structures who write off most earnings. Traditional lenders reject these borrowers despite strong cash flow and seven-figure portfolios.
P&L loans solve this problem by using CPA-prepared statements instead of tax returns. Your accountant shows what you actually earn, not what you report to the IRS after deductions.
You need two years in the same business with a licensed CPA preparing your P&L. Most lenders want 20-25% down and credit scores above 680.
Maybe 15 of our 200+ wholesale lenders offer true P&L programs. Each has different CPA requirements and calculation methods for qualifying income.
Rate premiums run 0.5-1.5% above conventional mortgages. This compensates lenders for the non-standard income documentation and higher perceived risk.
Most Atherton borrowers who need P&L loans qualify for bank statement loans too. Bank statements usually close faster with less CPA involvement and documentation hassle.
Use P&L loans when your business expenses exceed deposits. If your P&L shows $800k income but bank statements show $400k deposits, the P&L route makes sense.
Bank statement loans review 12-24 months of deposits without needing a CPA. 1099 loans work for independent contractors who receive regular 1099 forms instead of W-2s.
Asset depletion uses your investment accounts to calculate income. DSCR loans ignore personal income entirely and qualify you based on rental property cash flow.
Atherton loan amounts frequently exceed conforming limits. P&L lenders cap at $2-4M depending on program, which covers most properties but not ultra-luxury estates.
The concentration of tech founders and venture-backed executives here means complex equity compensation. P&L loans handle this better than conventional underwriting but still require careful structuring.
Your CPA must hold an active state license. Some lenders require two years minimum experience, while others accept newly licensed CPAs if the business history is strong.
Yes, but DSCR loans usually work better for investment properties. They ignore your personal income and qualify based solely on the rental cash flow the property generates.
Most use net profit before depreciation. Some average 12-24 months, others use the most recent year. Calculation method varies by lender and significantly affects your qualifying amount.
Lenders average the full statement period. Occasional losses are fine if the annual or two-year average shows positive income. Consistent losses across all periods will disqualify you.
When your business expenses exceed your deposits. If you show $600k net income but only deposit $300k after paying vendors, the P&L shows higher qualifying income.