P&L
(Profit & Loss Statement)

HOME LOANS

Business owners in the US have a unique advantage with the US tax code, allowing them to offset significant amounts of taxable income with deductions, which effectively reduces their tax burden.  

Unfortunately this advantage is washed away when the business owner applies for a home loan and is denied due to a lack of income and/or high debt-vs-income ratio.  

Why? Because traditional loan programs (such as Conventional, Jumbo, FHA, VA, USDA) all require the lender use the taxable income from the applicant’s income tax returns (business and/or personal). This limits the lender to using only a fraction of the business owner’s true income, which leaves the business owner frustrated and feeling trapped.    

Our P&L loan program solves this problem. Rather than using tax returns, we allow the business owner to have their licensed tax preparer provide a 1-2 Year Profit and Loss (P&L) Statement as income, which often provides a more accurate portrait of the applicant's true income profile.

There are no prepayment penalties for owner occupied and second homes, so the loan can be refinanced if desired when the applicant qualifies for a traditional home loan.  

Many of our clients use this program to buy their dream home and later decide to refinance it into a traditional loan once they and their tax advisers determine the optimal time.  

This allows the business owner to take control and buy a home on their terms, rather than the bank's terms.

This loan program is similar to our Bank Statement Program, but the documentation requirements are much simpler than providing 12-24 months of bank statements.  

WHO IS THE IDEAL CANDIDATE FOR OUR P&L LOAN?

1. Cash businesses and businesses that do not keep perfect bank records.
2. Businesses with seasonal income, and/or make intermittent deposits that do not follow a regular predictable pattern on a week-to-week, or month-to-month basis.

3. Businesses that have been in business over 2 years.

4. Businesses that have been in business for less than 2 years (but over 1 year) We can approve this type of scenario, with a supporting P&L and proof that you have worked in the same industry for at least 2 years.

There are some lenders that offer this type of program, but few of them can match our experience and success rate, making us the trusted professionals you need to make this program work for you.