We offer creative and innovative Non-QM loan solutions to self-employed professionals, including our One-Year Profit & Loss (P&L) Mortgage Program. This innovative option allows you to qualify based on your most recent business income without the use of personal income taxes.
Real-Life Scenario: How Our One-Year P&L Solution Helped a Self-Employed Borrower
The Challenge
Our borrower was purchasing a single-family primary residence with a 70% loan-to-value (LTV ) ratio after selling their current home. Since they had filed an extension for their 2024 taxes, conventional lenders would only consider their 2023 tax returns for income verification—resulting in a debt-to-income (DTI) ratio that was too high for approval.
The borrower knew their income had increased in 2024, but waiting to file and verify their taxes would delay the home purchase. With a strong 738 FICO score, they needed a solution that could use their most recent earnings, not outdated tax returns.
Non-QM P&L Program Helped
Our One-Year P&L Mortgage Program provided the perfect fix! By using a CPA-prepared Profit & Loss statement instead of tax returns, we were able to:
- Qualify the borrower based on their 2024 net income
- Achieve a 41% DTI (well within the 50% maximum limit)
- Close the loan quickly without waiting for tax filings
Key Features of Our One-Year P&L Mortgage Program
- One-year unaudited P&L only – No tax returns required
- must be prepared by a CPA, EA, or CTEC
- 50% minimum business ownership
- 720 minimum FICO score
- Loan amounts up to $3.0 million
- Cash-out refinance up to $1.5 million
- Available for primary residences, second homes, and investment properties.
We are very well-versed in Non-QM loan programs. If this P&L loan program doesn’t work for you, we offer a variety of other Non-QM loan programs that don’t require personal income verification.
Contact our office to see how our One-Year P&L Mortgage Program can help you qualify.
