P&L Loans, also known as Profit and Loss Statement Mortgages, are a type of non-QM (Non-Qualified Mortgage) loan designed specifically for self-employed borrowers and small business owners. Unlike traditional mortgages that heavily rely on tax returns and W-2 income, P&L Loans use your business's financial statements, including profit and loss (P&L) statements, to assess your income and determine your borrowing capacity.
This innovative approach acknowledges the fact that business owners often have complex financial situations, with fluctuating income and legitimate tax deductions that may not reflect their true earning potential. P&L Loans provide a more accurate and holistic view of your financial health, making it easier to qualify for a mortgage.
P&L Loans are ideal for: Self-Employed Individuals: Freelancers, consultants, sole proprietors, and partners in a partnership.
Small Business Owners: Owners of corporations, S corporations, or limited liability companies (LLCs).
New Businesses: Entrepreneurs with less than two years of tax history.
Businesses with Write-Offs: Owners who take advantage of legitimate tax deductions that may lower their taxable income.
Loan Term: 6 Months - 60 Months
Tax Return: No Tax Return Needed
Foreign Nationals: We Lend to Foreign Nationals
Closing Time: 7 - 10 Business Days
Loan Amount: $75,000 to $9,000,000+
Interest Rate: 9.50% to 12.99% (subject to change)
Rehab Financing: Up to 100% Rehab Financing
LTC (Loan to Cost): Up to 90%
LTV (Loan to Value): Up to 90%
Pre-Payment Penalty: No Pre-Payment Penalty
Min FICO: 660
