Who Should Apply?

• Business Owners

• Freelance Employees

• Consultants

• Contract Workers

• Independent Contractors

• Sole Proprietors

• Gig Economy Workers

• Realtors

• Entrepreneurs

No Tax Return? Let's Talk About Profit & Loss

 

Second to our popular Bank Statement program, the P&L Loan Program is the next offering in our AMP Suite. Rather than using tax returns, we allow the business owner to have their accountant or licensed tax preparer provide a 12-month Profit and Loss (P&L) Statement as income, which often provides a more accurate portrait of the applicant’s true income profile. This loan program is similar to our Bank Statement Program, but the documentation requirements are much easier than providing 12 - 24 months of bank statements.

 

Advantages of Profit & Loss Statement Loans

A Profit and Loss statement is required if the borrower is self-employed. Unlike most mortgage products, with this program, income and employment documents are not used as qualifying factors. Personal or Business Bank Statements may be used to document reserves.

There are no prepayment penalties for owner-occupied and second homes.

 

Criteria for Profit & Loss Statement Loans

• Must be a business owner or self-employed for at least two years.

• Loan amounts between $150,000 and $4,000,000. *(1)

• Must have a credit score of 660 or above.

• Max LTV 80% on purchases and 70% on cash-out refinances

• Max DTI 50%. | FTHB Max. DTI 45%

• Must have 12 months of P&L Statements.

• CPA/CTEC/EA signed/prepared P&L statement(s) required.

• A letter from the CPA, CTEC, (CA Tax Education Council), or EA (Enrolled Agent) stating that the applicant has been self-employed for a minimum of two years.

(1) Maximum loan amount exceptions on a case-by-case basis. Additional criteria may apply.