Use Profit and Loss To Qualify For A Mortgage

Profit and Loss Statement prepared by CPA/Enrolled Agent/Tax Florida Preparer Expenses will be calculated off the Profit and Loss Statement provided by CPA/Enrolled Agent for Florida mortgage applicant that covers the same period as the bank statements being used to qualify. The Profit and Loss Statement provided must support the revenue shown on the bank statements.. The percentage of expenses shown on the Profit and Loss Statement will be used to calculate the qualifying income from the bank statements.

P&L Mortgage Highlights

• P&L Must Be Prepared by a CPA, EA, or CTEC
• Borrower-prepared P&L NOT allowed
• P&L Must Cover 12 months and be Within 3 Months at Funding
• Co-Borrower W2 Income Allowed
• Up to 80% LTV
• Min FICO 660
• Up to $3M loan amount!
• 100% Gift Funds Allowed
• FTHB Allowed
• Primary, 2nd, and Investment Properties Allowed
• 3-12 Months Reserves
• SFH, 2-4 Unit, Condos
• Interest Only Available
• Use any AMC
• Cash-out can be used for reserves
• Min Expense Factor with a P&L is 10% for a service business and 20% for a product business

Tax Preparer Requirements
When using a Tax Preparer to document the expenses via a Profit and Loss Statement or expense. letter, the following is required:
• An expense letter must be on the tax preparer’s letterhead.
• A profit and loss statement must be signed by the tax preparer.
• Tax Preparers verified municipal, state, or federal proof of their business’ existence.
• Signed letter from borrower’s tax preparer affirming that tax preparer has filed the borrower’s tax returns for the previous two years OR that tax preparer has reviewed the previous two years of borrower’s self-prepared taxes.

Tax Preparer Requirements Include: 
• An expense letter must be on the tax preparer’s letterhead.
• A profit and loss statement must be signed by the tax preparer.
• Tax Preparers must verify municipal, state, or federal licensing boards or proof of their business’ existence.
• Tax Preparer’s certified affirming that they have filed the borrower’s tax returns for the previous two years OR that the tax preparer has reviewed the previous two years.

By evaluating creditworthiness based on factors such as the business’s profit and loss statement, credit score, and loan-to-value (LTV) ratios, we can provide financing options for a diverse range of mortgage applicants who may not meet the requirements for conventional mortgages. Our P&L​ Florida mortgage program is designed to be flexible and adaptable, catering to the distinct needs of each situation.

How Profit and Loss P&L Loans Work?

The P&L statement is one of three financial statements that every company has, along with the balance sheet and the cash flow statement. It is often the most popular and common financial statement in business because shows how much profit or loss was generated by a business.

P&L statements are also referred to as a(n):

• Statement of profit and loss
• Earnings statement
• Expense statement
• Income statement
• Statement of operations
• Statement of financial results or income

The P&L or income statement, like the cash flow statement, shows changes in accounts over a set period of time. The balance sheet, on the other hand, is a snapshot, showing what the company owns and owes at a single moment. It is important to compare the income statement with the cash flow statement since, under the accrual method of accounting, a company can log revenues and expenses before cash changes hands.

• P&L Only  Florida Mortgage: Use Your licensed Tax preparer to provide a profit and loss statement for mortgage income verification.

P&L MortgageTakeaways