Profit & Loss Statement HOME LOANS

Our P&L loan program is designed to be the easiest way for self-employed home buyers to get approved.

A Closer Look at P&L Loans...

The simplest path for self-employed homebuyers to obtain approval.

Business owners in the US enjoy a unique advantage through the US tax code, which permits them to offset significant amounts of taxable income with deductions, effectively reducing their tax liability.

While this presents clear tax benefits for business owners, complications often arise when they seek a home loan and face denials due to either insufficient income or a high debt-to-income ratio.

Why? Because conventional loan programs, including Conventional, Jumbo, FHA, VA, and USDA loans, typically require lenders to rely on the taxable income reported in the applicant's income tax returns (both business and personal). This practice limits the lender to utilizing only a portion of the business owner's actual income, leading to frustration and a sense of being trapped for the business owner.

Our P&L loan program offers a solution to this issue.

Instead of relying on tax returns, we enable business owners to submit a 1-2 Year Profit and Loss (P&L) Statement prepared by their licensed tax preparer as income documentation. This approach often provides a more accurate representation of the applicant's actual income.

Our program doesn't include prepayment penalties for owner-occupied and second homes, allowing applicants to refinance as soon as they qualify for a traditional home loan if desired. Many of our clients use this program to acquire their dream homes and opt to refinance into a traditional loan when it's deemed optimal by them and their tax advisors. It empowers business owners to take control and purchase a home on their own terms.

While this loan program shares similarities with our Bank Statement Program, the documentation requirements are significantly simpler than providing 12-24 months of bank statements.

If you've been in business for less than 2 years (but over 1 year), we can approve this scenario with a supporting P&L and proof that you've been working in your current industry for at least 2 years.

While some lenders offer similar programs, our extensive experience and high success rate set us apart, making us the trusted professionals you need to effectively utilize this program.