1Y + 2Y Profit & Loss (P&L) Loan

What is a 1Y + 2Y Profit & Loss (P&L) Loan?

The 1Y + 2Y Profit & Loss (P&L) Loan is designed for self-employed individuals and business owners who may not have traditional W-2 income but have a strong record of business earnings. This loan type allows borrowers to qualify based on the Profit & Loss statements from the past one or two years, making it an ideal option for those with steady business revenue.

Who Can Benefit from a 1Y + 2Y P&L Loan?

This loan is ideal for:

  • Self-Employed Professionals: Entrepreneurs and freelancers who want to leverage their business income to qualify for a mortgage.
  • Small Business Owners: Business owners who can demonstrate stable or growing business profits.
  • Investors with Non-Traditional Income Sources: Those who may not receive traditional paychecks but have reliable business income.

Advantages of a 1Y + 2Y P&L Loan

  • No Traditional Income Verification: Qualify based on P&L statements rather than personal tax returns or W-2s.
  • Flexible Income Calculation: Qualify with just one or two years of business earnings.
  • Ideal for Self-Employed Borrowers: Perfect for those whose business earnings represent a significant part of their income.
  • Faster Approvals: A straightforward process with fewer documentation requirements.

Qualifying for a 1Y + 2Y P&L Loan

  1. Provide 1-2 Years of Profit & Loss Statements: Submit recent P&L statements prepared by your accountant or CPA.
  2. Down Payment Requirement: A typical down payment requirement of 20-30% of the purchase price, depending on property type and loan amount.
  3. Additional Financials (Optional): Providing recent bank statements to support your business earnings may strengthen your application.
  4. Business Documentation: Some lenders may request proof of business ownership, such as business licenses or registration.

Required Documents

  • P&L Statements: Financial statements for the past 1-2 years, prepared by a licensed accountant or CPA.
  • Proof of Business Ownership: Documentation showing your status as a business owner, if applicable.
  • Additional Bank Statements (Optional): Supplementary financial records to verify the cash flow if needed.