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Self Prepared P&L


It's a good choice for self-employed borrowers who can not be qualified with agency loan and do not want to provide varities of income documents.

Program Highlights

7/6 ARM (5/1/5); 5/6 ARM (2/1/5)

1) Foreign national allowed;
2) No Paystub / W2 / tax return / 4506-C;
3) Gift funds allowed;
4) Max. Loan Amount $2M;
5) Max. LTV 70%;
6) Min. FICO 700.

Income Requirements

Self/CPA Prepared P&L:
★YTD + 2022 one full year P&L Stmt completed by CPA or borrower. CPA Letter (from CPA that prepared previous 2 years tax returns) verifying prepared business ownership and same location for at least 2yrs & 2yrs business license.
Please call for more details about

General Requirements

★Max Front-End/Total Debt-to-Income (DTI) ratio allowed: 36%/41%.
★Qualifying Interest Rate: the greater of start rate or fully-indexed rate.
★No minimum borrower contribution on owner occupied and second homes. (excludes Foreign National).
★For loan amount up to $1,000,000: 1 Full Appraisal &1 Automated Valuation Model are required. | For loan amount 1,000,001 to $2,000,000: 1 Full Appraisal & 1 Field Review are required.

What is P&L? Who can apply for P&L?

• Are you a self-employed borrower?
• Did the lender require your business bank statements to get the loan qualified? Did your mortgage lenders require you to sign the tax returns and provide transcripts?
• Have you ever been suspended or denied by the agency lenders? Did the lenders ever say “Per our guideline”?
• Do you know how you can qualify a house loan without any income documents?

P&L (Profit & Loss) is designed for self employed borrowers who typically have a lot of writes-off on their tax return to lower their income that would not be sufficient to qualify for agency programs, would benefit from alternative loan qualification methods. A CPA/CTEC/EA completed and signed P&L may be used as an alternative to tax returns to document a self-employed borrower’s income. In addition, a self-prepared P&L from borrowers can sometime be accepted.

Fast Approval Requirements

When you submit loans to lenders, they may need a YTD (Year-to-Date), P&L (or plus a prior year P&L sometimes), business license, CPA letter, etc..

Submission Team is available to calculate income for the borrower before submitting a loan.

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