Loading
Profit & Loss Statement Loans in San Bruno
San Bruno's business community includes independent contractors, small business owners, and professionals who write off significant expenses. Traditional mortgage qualification often penalizes these borrowers despite strong actual income.
P&L statement loans offer a path to homeownership by focusing on business profitability rather than taxable income. This approach recognizes that tax returns rarely tell the complete financial story for self-employed individuals.
You'll need a CPA-prepared profit and loss statement covering at least 12 months of business operations. The CPA must be licensed and independent—family members don't qualify as preparers.
Most programs require at least two years of self-employment history in the same industry. Credit scores typically start at 680, though some lenders accept 660 with compensating factors.
Down payments range from 10% to 20% depending on property type and overall borrower profile. Investment properties generally require 20% or more.
P&L statement loans come from specialized non-QM lenders rather than conventional mortgage sources. Each lender maintains unique underwriting guidelines for reviewing business income and expense documentation.
Working with a broker gives you access to multiple lenders with varying requirements. Some lenders focus on specific business types, while others offer more flexible debt-to-income ratios or lower down payment options.
Rates vary by borrower profile and market conditions. Non-QM products typically carry higher rates than conventional loans, reflecting the alternative documentation approach.
The quality of your P&L preparation matters significantly. Work with your CPA to present income consistently and clearly. Unexplained fluctuations or aggressive expense classifications can trigger additional scrutiny.
Many self-employed borrowers benefit from combining documentation methods. If your P&L shows moderate income, supplementing with bank statements or asset documentation can strengthen your application.
Plan ahead by maintaining consistent business operations and clean bookkeeping for at least 12 months before applying. Last-minute P&L adjustments raise red flags with underwriters.
Bank statement loans analyze personal or business deposits to calculate income, while P&L loans rely on your accountant's professional assessment of profitability. The P&L approach often works better when you maintain separate business accounts.
1099 loans work for independent contractors with straightforward commission or contract income. P&L loans accommodate more complex business structures with multiple revenue streams and deductible expenses.
Asset depletion loans calculate income by dividing liquid assets by loan term. This option suits borrowers with substantial savings but irregular business income patterns.
San Mateo County's competitive housing market requires strong offers and quick closings. P&L statement loans can close in 30-45 days with responsive borrowers and complete documentation.
The area's concentration of tech contractors, consultants, and small business owners makes alternative documentation loans common. Local real estate agents and sellers understand these financing methods.
San Bruno's proximity to SFO and major employment centers attracts self-employed professionals seeking convenient locations. Your business location and client base may be considered during underwriting for income stability assessment.
Your CPA must hold an active license and be independent—not a family member or business partner. Most lenders require the CPA to sign the statement and provide their license number.
Some lenders accept one year of self-employment if you have prior industry experience as an employee. You'll need documentation showing expertise in your field before going independent.
Underwriters review bank statements, business licenses, and may request additional documentation like invoices or contracts. They're confirming the P&L reflects actual business operations.
Rates vary by borrower profile and market conditions. Non-QM loans typically run 1-3% higher than conventional rates due to alternative documentation and increased lender risk.
Yes, P&L loans work for investment properties. You'll typically need 20-25% down and may face slightly higher rates than owner-occupied purchases using the same documentation.
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.