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Profit & Loss Statement Loans in Woodlake
Woodlake's self-employed buyers—from ag business owners to independent contractors—face a common barrier: strong income that doesn't show up cleanly on tax returns.
P&L loans use CPA-prepared profit and loss statements instead of tax returns, making them workable for borrowers who write off substantial expenses.
You need a licensed CPA to prepare your P&L statement covering 12-24 months. The CPA can't be a family member or business partner.
Credit scores start at 680 for most lenders. Down payments typically run 15-20%, though some programs accept 10% with higher rates.
Not every lender offers P&L programs. We work with about 30 wholesale lenders who do, each with different overlays on business type and income calculation.
Some lenders add back depreciation when calculating income. Others don't. That calculation difference can shift your buying power by $50K-$100K on the same earnings.
Most self-employed borrowers in Woodlake assume they need to use bank statements. P&L loans often qualify them for more house because the CPA can present income strategically.
If your business shows steady or growing profit over two years, P&L works better than bank statements. If income is lumpy or irregular, bank statements usually win.
Bank statement loans calculate income from deposits—usually 50-75% of what flows in. P&L loans use bottom-line profit, which can be higher if you have big deductible expenses.
1099 loans require documented 1099 forms from clients. P&L loans work even if you operate as an S-corp or receive payments that don't generate 1099s.
Woodlake sits in Tulare County's agricultural belt. Many borrowers run farming operations, packing businesses, or ag services where equipment depreciation and seasonal expenses reduce taxable income significantly.
Properties here often include acreage or outbuildings. Some P&L lenders restrict loans on properties over five acres or with significant commercial use, so we match your property type to the right lender upfront.
They need an active CPA license in any state. Unlicensed bookkeepers and EAs don't qualify. The CPA must sign and date the statement.
Most lenders want two years of self-employment. Some accept 12 months if you worked in the same field as a W-2 employee previously.
Lenders average the two years. If the average is positive and the trend improves, you can still qualify with most programs.
Expect 1-2% higher than conventional rates. Rates vary by borrower profile and market conditions, but pricing is competitive with other non-QM options.
Yes, but DSCR loans often work better for rentals since they don't require personal income verification. We compare both options for you.
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.