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Profit & Loss Statement Loans in Exeter
Exeter's small business economy runs on seasonal ag work, citrus packing, and independent contractors. Most of these borrowers write off everything they can, which tanks their taxable income but doesn't reflect actual cash flow.
P&L loans let you use a CPA-prepared profit and loss statement instead of tax returns. If your Schedule C shows $40K but you actually cleared $120K after write-offs, this is the only loan that works.
You need 12-24 months of P&L statements prepared by a licensed CPA. Most lenders want at least two years in business, though some accept one year with strong cash reserves.
Credit minimums run 620-680 depending on the lender. Down payments start at 10% but expect 15-20% for properties in rural areas like Exeter. Your debt-to-income ratio can't exceed 50% based on the P&L income.
Only non-QM lenders offer P&L loans, and each one has different CPA requirements. Some require the CPA to hold an active license in California. Others accept any state license as long as the P&L follows GAAP standards.
Rates run 1.5-3% above conventional loans. The wider your profit margin on the P&L, the better your rate. Lenders also care about business continuity — two years of steady profits gets better pricing than volatile swings.
Most CPAs in Exeter don't prepare P&Ls for mortgage purposes. You need to tell them upfront this is for a loan, because lenders reject bookkeeper-prepared statements or QuickBooks reports without CPA certification.
If your business is newer or seasonal, Bank Statement Loans often work better. They're easier to qualify for and don't require CPA involvement. I only push P&L loans when the borrower has a long-term CPA relationship and clean financials.
Bank Statement Loans use 12-24 months of personal or business bank statements instead of a P&L. They're faster to document and don't require a CPA. Most self-employed borrowers qualify easier this way.
1099 Loans work if you're a contractor who gets 1099s but writes off too much to show taxable income. DSCR Loans ignore your income entirely and approve based on rental property cash flow. Each loan fits different business structures.
Exeter properties under $400K usually appraise fine, but anything above that can face comps challenges. The city is small, and lenders get nervous when there aren't enough recent sales to justify value.
Ag-tied income raises red flags for some lenders. If your P&L shows heavy seasonal swings or reliance on a single crop, expect extra scrutiny. Diversified business income always gets better loan terms than single-source ag work.
No. Lenders require a licensed CPA to prepare and certify the P&L. Enrolled agents and bookkeepers don't qualify.
Most lenders require 12-24 months. Two years is standard, but some accept one year with strong reserves and credit.
One loss year doesn't disqualify you, but lenders average the two years. You need enough profit in the other year to offset it.
Yes, but DSCR Loans usually make more sense for rentals. They ignore your income entirely and only look at property cash flow.
30-45 days on average. The CPA certification adds time, especially if your accountant hasn't done mortgage P&Ls before.
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.