Self-employed borrowers may qualify using a third-party-prepared profit and loss statement instead of traditional income documentation. The program permits unaudited P&L statements covering 12 or 24 months and does not require bank statements to corroborate the reported income.
P&L Statement Loan Program Highlights
- Minimum credit score: 600
- Purchase financing up to 90% LTV
- Cash-out refinance up to 80% LTV
- Maximum loan amount: $5,000,000
- Maximum cash-out: $1,500,000
- Unaudited third-party-prepared P&L accepted
- 12-month or 24-month P&L statement options
- No bank statements required to support the P&L
- No pricing adjustment solely for using P&L documentation
- Multiple businesses permitted
- Primary wage earner’s credit score may be used to qualify
- Multiple nonsufficient-funds events may be accepted
- Income deposits do not require sourcing
- Disputed credit accounts may be accepted
Self-Employment Requirements
Borrowers must generally have been self-employed for at least two years. Income may be documented through an unaudited profit and loss statement prepared by an eligible third party.
Borrowers with ownership interests in more than one business may use income from multiple companies, subject to lender review and program requirements.
P&L Income Documentation
The program accepts profit and loss statements covering either the most recent 12 months or 24 months. The P&L is used to evaluate business income without requiring bank statements to verify or corroborate the reported revenue.
Accepted P&L Documentation
- Unaudited third-party-prepared profit and loss statement
- 12-month P&L statement
- 24-month P&L statement
- P&L statements for multiple businesses
Eligible Borrower Types
Foreign National Borrowers
Foreign national borrowers may be eligible with a minimum 660 credit score, subject to residency, documentation, property, and program requirements.
Permanent Resident Aliens
Permanent resident aliens may qualify with acceptable documentation confirming lawful permanent residency.
Non-Permanent Resident Aliens
Non-permanent resident aliens may be eligible with acceptable visa, employment authorization, residency, and income documentation.
Eligible Business Structures
The following company structures may qualify:
- C corporation
- S corporation
- Limited liability company
- Sole proprietorship
Purchase and Cash-Out Financing
Eligible self-employed borrowers may finance a purchase transaction up to 90% LTV. Cash-out refinance transactions may be available up to 80% LTV, with a maximum cash-out amount of $750,000.
Loan amounts are available up to $5 million, subject to credit score, occupancy, property type, reserves, loan purpose, and other underwriting requirements.
Who May Benefit From a P&L Statement Loan?
A P&L statement mortgage may be appropriate for business owners and self-employed borrowers whose tax returns do not fully reflect their current business cash flow. It may also serve borrowers who prefer not to provide personal or business bank statements for income qualification.
Last Updated on 7 days ago by Broker Mortgages