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Profit & Loss Statement Loans in Fairfield
Self-employed borrowers in Fairfield face a problem: traditional lenders want two years of tax returns showing high net income. Most business owners write off everything they can, which kills their qualifying income.
P&L loans solve this by using your current business income instead of tax returns. A CPA prepares a profit and loss statement showing what your business actually makes, not what you report to the IRS.
You need at least 12 months in business, though most lenders prefer 24 months. Your CPA must be licensed and willing to prepare a year-to-date or full-year P&L statement.
Credit score minimums start at 620, but expect better rates at 680 or higher. Down payment requirements typically range from 10% to 20% depending on loan amount and property type.
Most traditional banks won't touch P&L loans. You're working with non-QM lenders who specialize in alternative documentation programs.
Rates run 1-2% higher than conventional loans because these carry more risk for lenders. We shop across 200+ wholesale lenders to find programs that actually work for business owners who legitimately earn strong income but show minimal taxable profit.
The CPA relationship matters more than borrowers realize. Some CPAs refuse to prepare P&Ls for lending purposes, or they prepare them in ways lenders reject. Get your CPA involved early.
I see deals fall apart when borrowers assume any P&L works. Lenders want specific formats, consistent methodology, and CPAs who respond to underwriter questions. The three-page P&L your CPA uses for tax planning probably won't cut it.
Bank statement loans are the main alternative. They use 12-24 months of business deposits instead of a P&L. Bank statement programs typically cost less and close faster.
Choose P&L loans when your business has strong recent income but weak bank deposits, or when you run multiple accounts that complicate deposit analysis. Some borrowers qualify better on P&L than statements, especially in high-revenue businesses with legitimate expenses.
Fairfield's business community includes contractors, property managers, and retail operators who all struggle with traditional qualification. P&L loans work well for established local businesses with verifiable operations.
Property values in Solano County keep these loans below jumbo thresholds in most cases, which helps with pricing. Investment properties near Travis Air Force Base can also qualify under P&L programs if you're self-employed.
Most lenders want a P&L dated within 90 days of closing. Year-to-date statements work for ongoing applications.
Yes, P&L loans work for primary homes, second homes, and investment properties. The P&L verifies your income regardless of property use.
Find a CPA who will, or consider bank statement loans instead. We can refer you to CPAs experienced with these programs.
No, but they verify your CPA's license and may request supporting documentation. The P&L replaces tax return verification.
Expect 3-4 weeks from application to clear-to-close. Non-QM underwriting takes longer than conventional loans.
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.