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Santa Cruz runs on self-employed income. Freelancers, tech consultants, and small business owners are everywhere here.
Most conventional lenders reject these borrowers. A P&L loan exists specifically to solve that problem.
680+ typical
Min Credit Score
CPA P&L statement
Income Doc
10-20% expected
Down Payment
2 years typical
Business History
Non-QM
Loan Type
Your CPA prepares a 12- or 24-month profit and loss statement. That document replaces tax returns as income proof.
Most lenders want a 680+ credit score and 10-20% down. Strong reserves help significantly.
Big banks don't offer P&L loans. This is wholesale lender territory — and that's exactly where we operate.
We work with 200+ wholesale lenders. Several specialize in non-QM products like this one.
The most common mistake: submitting a P&L that doesn't match your bank deposits. Lenders cross-check both.
Your CPA needs experience with mortgage P&Ls specifically. A standard business P&L often gets flagged or rejected.
Bank statement loans use 12-24 months of deposits instead of a P&L. Some borrowers qualify easier that way.
A 1099 loan works better if most of your income comes from contract work. P&L loans fit business owners with real operating expenses.
Santa Cruz has a high cost of living. Many self-employed borrowers here earn strong gross revenue but show low taxable income.
That gap is exactly why P&L loans exist. Your CPA-prepared statement shows what you actually made — not what you wrote off.
A licensed CPA or tax professional must prepare it. Self-prepared statements are not accepted by lenders.
You don't submit tax returns for income verification. Lenders may still ask for business licenses or bank statements to confirm you're operating.
Most lenders require 2 years of self-employment history. Some non-QM lenders accept 1 year with strong documentation.
Yes. Non-QM loans carry more lender risk, so rates run higher. Rates vary by borrower profile and market conditions.
Yes. P&L loans are available for primary homes, second homes, and investment properties throughout Santa Cruz County.
A single down period isn't automatic disqualification. Lenders look at the trend — consistent losses will likely kill the deal.
Profit & Loss Statement Loans in Santa Cruz