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Profit & Loss Statement Loans in Rohnert Park
Rohnert Park's self-employed community—from tech contractors to Sonoma County's wine industry consultants—often can't document income the traditional way. P&L statement loans solve this by using CPA-prepared profit and loss statements instead of tax returns.
This Non-QM product works particularly well in Sonoma County where many borrowers run lean businesses to minimize tax liability. Your CPA shows the income you actually earn, not what you report to the IRS.
Most Rohnert Park deals we close with P&L statements involve entrepreneurs who've been in business at least two years. The program accepts lower debt-to-income ratios than bank statement loans because CPAs verify the numbers.
You need a CPA-prepared P&L covering 12-24 months of business activity. The CPA must be licensed and independent—your cousin with a bookkeeping certificate won't work. Most lenders want to see consistent or growing revenue across both years.
Credit scores start at 660 for most programs, though 700+ unlocks better rates. Down payments typically run 15-20% for primary residences in Rohnert Park. Lenders calculate income by averaging your P&L net profit across the statement period.
Your business must show at least two years of history in the same industry. Lenders verify this through business licenses and sometimes your CPA's certification letter. Cash reserves matter—expect to show 6-12 months of payments in the bank.
P&L statement loans sit in the Non-QM space where lenders have different appetites for documentation. Some accept one-year statements for strong borrowers; others require two years no matter what. The CPA's reputation matters more than many borrowers realize.
We work with about 15 wholesale lenders offering P&L programs in Sonoma County. Rate spreads between lenders can hit 75 basis points on identical borrower profiles. This product requires real shopping because underwriting standards vary dramatically.
The best lenders verify your CPA's license and may contact them directly. They look for red flags like P&L statements that show suspiciously round numbers or profit margins that don't match your industry norms.
Most borrowers who need P&L loans should actually use bank statement programs instead. P&L works best when your business has complex accounting—multiple entities, significant non-cash expenses, or partnership structures. If you're a solo consultant, bank statements are simpler and often cheaper.
Your CPA's presentation quality affects approval odds more than borrowers expect. We've seen deals die because the P&L looked amateurish or used inconsistent accounting methods between years. Spring for a properly formatted statement on CPA letterhead.
Timing matters with P&L loans. Get your statements prepared before you start shopping for homes. Most CPAs need 2-3 weeks to compile historical data. Underwriting takes 3-4 weeks once submitted—longer than conventional loans.
Bank statement loans analyze deposits; P&L loans analyze profit. For Rohnert Park borrowers with lumpy income—maybe you bill quarterly or have seasonal revenue—P&L statements smooth out those fluctuations better. They also handle business expenses more accurately than bank statement underwriting.
1099 loans work if you're truly an independent contractor with clean income documentation. But if you operate as an LLC or S-corp, those 1099s don't capture your actual earnings. P&L statements show the full picture including retained earnings and distributions.
DSCR loans make sense for Rohnert Park investors buying rental property. But for your primary residence, P&L statements typically deliver better rates because lenders can verify your personal income capacity, not just the property's rental potential.
Rohnert Park sits in Sonoma County's more affordable zone, but prices still require solid income documentation. The self-employed community here—healthcare contractors, vineyard consultants, construction business owners—typically needs Non-QM products to qualify.
Property types matter with P&L loans. Condos in Rohnert Park's planned communities get easier approval than rural properties in unincorporated Sonoma County. Lenders prefer standard property types when they're already taking documentation risk on the borrower side.
Local appraisers sometimes take longer in Sonoma County than in metro areas. Factor an extra week into your timeline compared to San Francisco or San Jose deals. This matters because P&L loan approvals already run slower than conventional financing.
Must be a licensed CPA. Lenders verify the CPA's credentials and won't accept statements from bookkeepers or unlicensed accountants, even if they prepare your taxes.
That's exactly why P&L loans exist. The CPA-prepared statement shows actual profitability before tax strategies, which is what lenders use for income calculation.
Most lenders want 3-6 months of business bank statements to verify the P&L numbers. They're checking that deposits align with reported revenue.
Rates vary by borrower profile and market conditions. Generally similar, though P&L loans sometimes price slightly better for borrowers with complex business structures.
Statements must cover recent business activity, typically the most recent 12-24 months. Year-old fiscal statements won't work unless very recently closed.
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.