This P&L Only Jumbo Loan Program provides alternative income documentation for borrowers seeking mortgage amounts above $5 million. Qualified borrowers may finance up to $10,000,000 using a 12- or 24-month Profit and Loss Statement rather than traditional income documentation.
The program allows up to 60% LTV for qualified borrowers with a minimum 720 FICO. The 60% maximum applies to purchase and refinance transactions for primary residences, second homes, and investment properties.
P&L Only Ultra Jumbo Loan Highlights
- Maximum Loan Amount: $10,000,000
- Maximum LTV: 60%
- Minimum FICO: 720
- Income Documentation: 12- or 24-month P&L Only
- Business Bank Statements: Not required
- Maximum DTI: 50%
- Occupancy: Primary residence, second home, and investment property
- Transactions: Purchase, rate/term refinance, and cash-out refinance
- Maximum Cash in Hand: No stated limit
- Loan Product: 7/6 ARM
- Lien Position: First lien
The program matrix specifically provides a $10 million maximum loan amount at 60% LTV across the listed primary-residence and second-home/investment purchase and refinance categories.
Profit and Loss Statement Only Income Documentation
This program permits borrowers to qualify using a 12-month or 24-month Profit and Loss Statement without business bank statements.
How P&L Income Is Calculated
Gross qualifying income is calculated using the net income reported on the P&L divided by either 12 or 24 months, depending on the applicable documentation period. Business bank statements are not required to support the P&L income calculation.
P&L Preparer Requirements
The Profit and Loss Statement must be prepared by one of the following:
- CPA
- Enrolled Agent (EA)
- CTEC tax preparer
PTIN-only preparers are not permitted. The preparer must also provide a signed statement confirming that they filed or reviewed the borrower’s most recent tax return.
Credit and Debt-to-Income Requirements
A 720 minimum FICO is required for borrowers subject to the program’s standard credit requirements.
Additional guidelines include:
- Maximum 50% DTI
- 0x30x12 housing history
- At least 48 months seasoning following a housing event
- Multiple housing events within the previous seven years are not permitted
- Rent-free borrowers and borrowers with incomplete housing histories are permitted
Eligible Borrowers
Eligible borrowers include:
- U.S. citizens
- Permanent resident aliens
- Non-permanent resident aliens
- Foreign nationals
Non-permanent resident aliens and foreign nationals are limited to 50% LTV. ITIN borrowers and non-occupant co-borrowers are not eligible under the matrix.
Eligible Property Types
Eligible properties include:
- Single-family residences
- PUDs
- Townhomes
- 2–4 unit properties
- Warrantable condominiums
The program is currently listed as California only. Two appraisals are required, and a Form 1007 is required for non-owner-occupied properties. Appraisal transfers are not permitted.
Ineligible Property Types
The matrix lists the following as ineligible:
- Non-warrantable condominiums
- Rural properties
- Condotels
- Properties greater than 10 acres
- Agricultural properties
- Manufactured homes
- Modular homes
- 2–4 unit properties with ADUs
- Unique properties
- Leasehold properties
Reserves and Additional Requirements
The program requires 12 months of reserves. The matrix further states that 12 months of PITIA must be escrowed at closing for monthly payments. Cash-out proceeds cannot be used to satisfy the reserve requirement.
Additional program provisions include:
- Interest-only: Not permitted
- Gift funds: Not permitted
- Gift of equity: Not permitted
- Subordinate financing: Not permitted
- Power of attorney: Not permitted
- Escrow/impound waiver: Not permitted
- Maximum cash in hand: Unlimited, subject to reserve requirements
- Available product: 7/6 ARM
- First lien only
P&L Only Qualification for Ultra Jumbo Loan Amounts
For borrowers who do not want to qualify using conventional tax-return or employment-income documentation, this program provides a P&L-only income calculation for loan amounts from $5,000,001 up to $10,000,000.
The defining features are straightforward: 720 minimum FICO, up to 60% LTV, 12- or 24-month P&L documentation, and no business bank statements required to substantiate the P&L calculation.
Available in the Following States:
Alabama, Alaska, Arizona, California, Colorado, Florida, Georgia, Hawaii, Illinois, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Nevada, New Jersey, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, and Washington.
Last Updated on 3 weeks ago by Broker Mortgages