Self-employed individuals have a more difficult time qualifying for a traditional mortgage. At A&D Mortgage, we offer our Non-QM 1-year and 2-year P&L Only loans to help them.
Borrowers can qualify for an A&D loan based on the strength of their business’s Profit & Loss (P&L) statement only. No bank statements are required.
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A profit and loss loan looks at a company’s P&L statement to determine if borrowers qualify for a loan. This eliminates the need to use tax returns which can be helpful when applicants take a large number of deductions and do not qualify for traditional financing.
A P&L loan gives them a chance to show their company’s profitability even if their tax returns and bank statements do not reflect this information.
While the qualifying factors can be different with each lender, here is what can be expected from A&D Mortgage:
P&L loans are most common for self-employed borrowers that take a lot of deductions at tax time. It is also great for business owners that do not have the bank statements to prove their regular income.
They do not have to supply a reason – as long as they have P&L statements certified by their CPA, tax agent, or tax preparer, they can use them to prove their income. It is a fantastic way to get a mortgage loan much faster without having to mess with the deductions allowed to be taken on income tax returns.