Loading
Profit & Loss Statement Loans in Vallejo
Vallejo's self-employed buyers face a common problem: strong business income that doesn't show up on tax returns. P&L statement loans solve this by using CPA-prepared financials instead of Schedule C forms.
This matters in Solano County where contractors, small business owners, and independent professionals make up a significant portion of the workforce. Standard conforming loans routinely reject borrowers who write off legitimate expenses.
We see this most often with established businesses showing consistent revenue. The CPA statement captures your actual earning power without the tax optimization that kills traditional mortgage applications.
You need a licensed CPA to prepare your profit and loss statement covering 12-24 months of business activity. The CPA must be independent—not your spouse or business partner—and carry an active credential.
Credit requirements typically start at 680, though some lenders go to 660. Down payment minimums run 10-15% for purchases, higher for investment properties or lower credit scores.
Most lenders require two years in your current business or industry. Cash reserves matter here—expect to show 6-12 months of payments in liquid accounts after closing.
P&L programs vary wildly between lenders. Some accept one year of statements while others demand two. Rate spreads can hit 2% between the most and least competitive options.
Non-QM lenders fund these loans, not Fannie Mae or Freddie Mac. That means portfolio lending with proprietary underwriting guidelines. Each lender interprets your P&L differently.
We shop 200+ wholesale lenders because pricing and approval odds shift dramatically. One lender might love your industry while another red-flags it completely.
The CPA's presentation matters as much as the numbers themselves. Clean, detailed statements with logical expense categories get approved. Sloppy work with unexplained line items gets rejected or subjected to brutal income adjustments.
Lenders add back certain expenses—depreciation, one-time costs, interest—but they also scrutinize gross profit margins. If your industry typically runs 40% margins and you're showing 65%, expect questions.
Timing is critical. Get the CPA statement prepared before shopping for loans. Waiting until you're under contract creates pressure and mistakes. We've seen deals die because borrowers rushed the P&L preparation.
Bank statement loans offer an alternative using 12-24 months of business deposits. They skip the CPA requirement but typically carry higher rates and larger down payments.
The P&L route makes sense when you have clean books and an established CPA relationship. Bank statements work better for newer businesses or borrowers who lack detailed financial records.
Some self-employed borrowers can qualify conventionally by restructuring their tax strategy for two years. That requires advance planning and potentially leaving money on the table to the IRS.
Vallejo's economy includes significant construction, maritime services, and small business ownership. These industries generate strong income that tax returns often understate.
Mare Island's redevelopment has created opportunities for contractors and specialty trades. Many of these professionals qualify for higher loan amounts through P&L documentation than traditional financing.
Solano County's location between Sacramento and the Bay Area means many self-employed borrowers serve clients across multiple markets. P&L loans capture this regional income flow that business bank accounts might fragment.
The CPA must hold an active state license and be independent—not a family member or business partner. Most lenders verify the credential directly with state boards.
Lenders typically use 50-75% of net profit after adding back certain expenses. The exact calculation varies by lender and your specific expense structure.
Consistent income works fine. Lenders want stability, not necessarily growth. Declining revenue triggers additional scrutiny and possible denials.
Seasonal businesses qualify regularly. The P&L should span a full 12-month cycle to capture your complete earning pattern, not just peak months.
Yes, most lenders allow hybrid income scenarios. The W-2 portion uses standard verification while business income follows P&L documentation requirements.
Expect 30-45 days versus 21-30 for conventional. Non-QM underwriting involves manual review and CPA verification that adds time to the process.
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.