Profit & Loss Statement Loan Program
Call Me TODAY: +1 (954) 552 2959
Oleksandra "Sasha" Palmer
Sr. Loan Officer NMLS1561169
Profit & Loss Statement Loan Program
Good for Self-employed individuals who have a difficult time qualifying for a standard mortgage. Borrowers can qualify for this loan based on the strength of their business’ Unaudited Profit & Loss (P&L) statement. No bank statements are required to verify the income!
What is a Profit & Loss Statement Loan Program?
A Profit & Loss Statement Loan Program is a type of loan program where lenders use a borrower's profit and loss statements from their business to assess income instead of traditional income documentation like tax returns or W-2 forms. This program is particularly beneficial for self-employed individuals or small business owners who may not have consistent pay stubs or other standard income verification documents.
In a Profit & Loss Statement Loan Program, you will provide recent 12 months or 24 months profit and loss statements from your business and we will analyze these statements to determine your average monthly income and overall financial stability.
Similar to Bank Statement Loans, which rely on bank statements for income verification, Profit & Loss Statement Loans offer flexibility to borrowers with non-traditional income sources.
What are Profit & Loss Statement Loan Program Requirements?
  • Program designed for Primary, Second Home, and Investment occupancy for up to 4 units
  • Condominiums with Recreational Lease and Condotels are allowed (restrictions apply)
  • Minimum down payment is as low as 20% (restrictions apply)
  • Credit score as low as 660 (restrictions apply).
  • Full two years of business history is required (self-employment if 1099)
  • 12 and 24 most recent Profit & Loss Statements prepared by a Licensed CPA, Enrolled Tax Agent, or Licensed Tax Preparer are required for the income calculation
  • Gift funds allowed (restrictions apply)
  • The borrower will be required to demonstrate 3 months reserves (future all-in monthly payment for the property he/she will be buying X 3)
  • No prepayment penalty on Primary Residence and Second Home Occupancies
  • Closing costs (bank services, title company services, government fees, transfer tax, appraisal, prepaid home insurance, and home tax) will add up anywhere around 5-7%
  • Cash-out refinance available with this program.
What documents are needed for a pre-approval?
  • Copy of Driver License and Social Security Cards
  • Copy of both sides of the Green Card/Work Authorization Card
  • Unaudited Profit & Loss Statement for the most recent 12 or 24 months
  • Two most recent Bank Statements to document available funds for the down payment, reserves, and closing costs
*Additional Documentation may be required
What are Profit & Loss Statement Loan Limits?
The loan amount for our Profit & Loss Statement Program ranges from a minimum of $100,000 up to $4 million. This allows for flexibility in financing options, catering to a wide range of property values and borrower needs. Whether you're seeking a smaller loan for your primary residence or a larger investment loan for multiple units, our program is designed to accommodate various financial scenarios
What are Profit & Loss Statement Loan Rates?
Profit & Loss Statement Loan rates can vary depending on several factors, including the borrower's credit score, loan-to-value ratio, loan amount, and current market conditions. Generally, interest rates for Profit & Loss Statement Loans may be higher compared to traditional mortgage rates, as they often involve a higher level of risk for the lender due to the alternative income verification method.
Typically, Profit & Loss Statement Loan rates may be 1%-1.5% higher than rates for standard loan programs. However, it's essential to note that these rates are subject to change and may fluctuate until the loan is locked.
Conventional Loan vs Profit & Loss Statement Loan
Conventional Loans and Profit & Loss Statement Loans represent two distinct mortgage options with unique characteristics and eligibility criteria.

Conventional Loan:

  • Offered by private lenders without government backing.
  • Typically necessitates a higher credit score, typically around 620 or higher
  • May entail private mortgage insurance (PMI) if the down payment is less than 20% of the home's purchase price
  • Provides various loan amounts and repayment periods for borrower flexibility
  • Interest rates can fluctuate based on market conditions and borrower creditworthiness

Profit & Loss Statement Loan:

  • Tailored for borrowers with non-traditional income sources or lower credit scores
  • Requires submission of 12 or 24 months of Profit & Loss Statements instead of traditional income documentation like tax returns
  • Offers flexibility, especially beneficial for self-employed individuals lacking consistent pay stubs or tax documentation
  • Typically features higher interest rates compared to Conventional Loans due to the heightened risk for the lender
In summary, Conventional Loans offer greater flexibility in terms of credit score requirements and property eligibility, but may necessitate higher credit scores and potential PMI. Profit & Loss Statement Loans cater to borrowers with non-traditional income sources but entail higher interest rates. The decision between Conventional and Profit & Loss Statement Loans hinges on factors such as credit score, income documentation availability, and individual financial circumstances.
Conventional Loan Rates vs Profit & Loss Statement Loan Rates?
Conventional Loan Rates and Profit & Loss Statement Loan Rates denote the interest rates associated with two distinct types of mortgage loans.

Conventional Loan Rates:

  • The interest rates for Conventional Loans can fluctuate based on various factors such as the borrower's credit score, loan amount, and prevailing market conditions
  • These rates are influenced by broader economic factors like inflation rates and decisions made by the Federal Reserve

Profit & Loss Statement Loan Rates:

  • The interest rates for Profit & Loss Statement Loans tend to be higher compared to Conventional Loans due to the increased risk for the lender
  • These rates may vary depending on factors such as the borrower's creditworthiness and the lender's assessment of risk
In summary, while Conventional Loan Rates are influenced by private lenders and broader economic conditions, Profit & Loss Statement Loan Rates are higher due to the specific characteristics of this loan type.
Apply NOW!
Why choose my team & I?
  • #1. Transparency is paramount in your home buying journey. I ensure a clear understanding of the entire process, from application to closing, while Lending Capital Group INC guarantees straightforward communication, no hidden fees, and no surprises. You'll be well-informed and confident at every stage.
  • #2. Your dream home is within reach with our Low Down Payment Programs starting at 3%. I understand the importance of affordability, offering options that make securing your first home easier without straining your budget.
  • #3. Your financial well-being matters to me. At Lending Capital Group INC, we secure competitive interest rates, ensuring that you get the best possible terms and save money over the life of your mortgage.
Ready to turn your homeownership dreams into reality?
Contact me TODAY, and let me be your trusted partner as you take the exciting step into homeownership. Welcome home!
Apply NOW!
Contact Me
Phone: +1 (954) 552 2959
Email: opalmer@lcgloans.com
Made on
Tilda