Traditional lenders require steady income, which can be a barrier for self-employed individuals. The P&L loan program provides a practical solution for business owners and independent contractors who maintain detailed financial records but may not qualify under standard lending criteria. This loan program differs from conventional lending options by utilizing profit and loss statements as the primary qualification method, rather than traditional W-2 income documentation.
A Profit and Loss statement, also known as an Income Statement, is a financial document that summarizes a business’s revenues, costs, and expenses over a specific period (e.g., 12 or 24 months). In the context of a P&L loan, the lender uses this statement, typically prepared and signed by an accountant or tax preparer, to determine the net income that can be used to qualify the borrower for the mortgage, bypassing personal tax returns.
Key benefits:
- These loans are customized for entrepreneurs who often have substantial tax deductions impacting their reported income.
- P&L loans focus on business performance and cash flow rather than traditional employment history.
- Evaluates overall business health and revenue trends instead of fixed income thresholds.
- Often quicker approval times due to simpler documentation requirements.
Why Choose Loankea as Your Trusted P&L Loan Lender
When looking for a P&L loan mortgage, choosing the right lender makes all the difference. At Loankea, we provide tailored lending solutions to help you achieve your goals.
Why choose our P&L program?
- No bank statements required up to 70% LTV
- Income support tolerance 25%
- 1-year business existence may be considered
- Ideal for entrepreneurs who may not show sufficient income on tax returns
- Keep your existing low-interest rate first mortgage.
- No tax returns needed to qualify.
- Qualify on the deposit income income calculated from the business’ bank statements
Industry-Leading Features
- No Private Mortgage Insurance (PMI) required
- Minimum down payment starting from 20%
- No prepayment penalties
- Flexible loan terms: 30-year or 15-year fixed rate
- Loan amount from $100,000
- Low-interest rate options
- Temporary rate buydowns available
Loankea offers competitive rates and flexible terms in our P&L mortgage loan program. We help you access affordable financing options that match your unique financial needs and make homeownership possible.
We excel in non-qualified mortgage (non-QM) products and guide you through every step of the P&L loan process. Our solutions work well for borrowers who don’t fit traditional lending requirements. We keep the application process simple and communicate clearly to help you succeed.
P&L Mortgage Requirements for Self-Employed Borrowers
Self-employed borrowers must provide detailed documentation of their business income when applying for a mortgage. Meeting the following criteria could qualify you for a P&L mortgage with Loankea.
Self-Employment History
- Minimum of two years of documented self-employment or business ownership
- Must provide business registration documents, tax identification numbers, or equivalent verification
Financial Documentation
- Current profit and loss statement demonstrating business performance
- Bank statements showing minimum three months of PITI reserves for loans under $1 million
- Additional reserves may be required based on total loan amount
Credit and Down Payment Requirements
- Minimum credit score of 620
- Down payment of 10% or more (percentage increases with lower credit scores)
Loan Parameters
- Minimum loan amount: $100,000
- Maximum loan amount: $5,000,000
Financial reserves requirements scale with the loan amount, ensuring sufficient liquidity for loan servicing. All documentation must be current and verifiable for loan approval consideration.
What We Offer at Loankea
For individuals interested in the P&L loan program, Loankea provides diverse, adaptable solutions designed for various financial requirements. Specifically, business owners can qualify for 1-year or 2-year Profit & Loss Statement loans, using their business P&L documentation instead of conventional income verification methods.
Our Best Terms and Conditions:
- Loan amounts up to $2.5-3 million
- Down payment from 10%
- DTI up to 55%
- No bank statements needed
- Flexible cash-out options
- Available for owner-occupied, second homes, and investment properties
- Temporary rate buydowns available
For a flexible mortgage option, consider a P&L loan with Loankea. Our expert team ensures competitive rates and a seamless process tailored to your finances.
