​​Profit and Loss Statement Loan Program - Unlocking Mortgage Approval for a Wide variety of Business Owners

​Are you self-employed? And have been denied for a mortgage simply because you “didn’t show enough income” on your tax returns?

You work hard—and you deserve to buy a home, just like everyone else.

And yet, the sad fact is that many banks routinely deny home loans to perfectly well-qualified applicants, just because of your tax returns. If you’re fed up with this, and looking for a solution, look no further.

Self-employed homeowners, rejoice! Here is a loan program that’s going to fix this problem for you. It’s called a PROFIT & LOSS STATEMENT LOAN. (aka P&L Loan, Profit and Loss Loan, Profit and Loss Statement Mortgage, P&L Mortgage) 

WHO IS THE IDEAL CANDIDATE FOR A PROFIT AND LOSS STATEMENT LOAN?

This loan program is ideal for business owners, independent contractors, or small business owners who have trouble qualifying for a traditional mortgage loan. It can also be helpful for applicants who may be having a difficult time qualif​​ying for non-traditional loan programs like BANK STATEMENT LOANS or a 1099 INCOME PROGRAM.

• Here are some examples of applicants who can benefit from this program:
• Cash businesses
• Businesses that have irregular or inconsistent deposits
• Seasonal income
• Income that comes from a few large deposits per year. (such as property investors or flippers)
• Business owners who have been in business for at least 2 years, OR… have been in business for at least 1 year with at least 2 years of work experience in the same field as your business.

HOW THE PROFIT & LOSS STATEMENT LOAN PROGRAM WORKS

On a traditional mortgage loan, the lender asks for lot of things, including tax returns (business and personal), supporting W2's, 1099's, paystubs....but when you're self-employed or if you're an independent contractor, even more is required, such as a year-to-date profit and loss statement, balance sheet, and sometimes other financial statements.

The Profit and Loss Statement Loan Program works differently. This is a home loan that works pretty much like every other Conventional Loan you may have encountered, EXCEPT for one key difference: Instead of using the income shown on your Tax Returns--- you simply provide us with a Profit and Loss Statement prepared by any licensed tax preparer for the most recent 24 months. The Profit & Loss Statement loan does not require any tax returns.

After we take the gross profit minus expenses, we count the NET profit (after expenses) from this statement, and divide by 24 months, and the resulting figure becomes the monthly INCOME that we use to qualify your new loan application.

Yes, it really is that simple---and we find that this approach gives us a much better idea of your true business income vs the tax return approach traditional home loan. 

FEATURES AND BENEFITS OF A PROFIT AND LOSS STATEMENT LOAN PROGRAM

• 30 Year Fixed Rate Terms
• NO PMI (Private Mortgage Insurance)
  

• 30 Year Fixed Rate Terms
• NO PMI (Private Mortgage Insurance)
  

HOW TO QUALIFY FOR A PROFIT AND LOSS STATEMENT LOAN

• Self-Employment History - To qualify, you must either A) be in business for at least 2 years OR…B) you must be in business for at least 1 year with at least a 2 year work experience in the same field as your business.
  
  

• Income: For this program, the income statement is determined by a simple Profit and Loss Statement for a specific period---the most recent 24 months. This can be prepared by any licensed tax professional, not necessarily the professional who filed your tax returns. Note: this does not have to match the tax returns. The tax professional will need to write an accompanying letter on their letterhead with their company name, company address, and the tax professional's PTIN number.
  

• Minimum Down Payment – 20% minimum for primary homes (30% for Investment)
  
• Bank Statements (Personal) – most recent 2 months for any accounts that you intend on using for your down payment and closing costs.
  
• Loan Application – which you can APPLY ONLINE HERE

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For the most current details about the program, be sure to check out our Program Resource Page ».

If you’re self-employed and you’ve gotten this far in business, it didn’t happen because you’re accustomed to taking “NO” for an answer---so stop letting these big banks and credit unions tell you NO, when we have more reasons to say YES.

Check out our Profit and Loss Statement Loan Program Page, or if you have a question you can simply DROP US A LINE HERE.

Yours in successful homeownership,

Derek Bissen
Loan Originator
NMLS#365627
Unconventional Lending Program Director

​About the Author: 

Derek Bissen is a licensed Mortgage Loan Originator with over 25 years of experience in the industry. Derek is a self-employed lending expert who is known for his ability to work with borrowers who have substantial wealth and non-traditional lending needs. He is a creative loan structurer and specializes in portfolio lending, asset-based lending, bank statement lending, as well as traditional loans such as Conventional, FHA, VA, and first-time homebuyers.

Derek's expertise in the mortgage industry is unparalleled. He is a trusted advisor to his clients, providing them with customized loan solutions that meet their unique financial goals and needs. His vast experience and knowledge make him a valuable asset to anyone looking to purchase a home or refinance their existing mortgage.

As a highly-experienced loan originator and author, Derek is committed to sharing his knowledge with others. He regularly provides valuable insights and advice to readers looking to navigate the complex world of mortgage lending. His articles are informative, engaging, and backed by years of hands-on experience.

With his wealth of knowledge and dedication to his clients, he is the go-to source for all your mortgage lending needs. If you're looking for a reliable and trustworthy mortgage expert, contact Derek today to learn more about how he can help you achieve your financial goals.