Profit & Loss Loans
Profit & Loss Loans
A profit and loss loan (P&L) qualifies a business owner on their income statement instead of tax returns. Qualifications can be 12 or 24 months, giving lenders a clear picture of your earning power, taking into account tax deductions that make your reportable income lower than real cash flow.
Who typically uses Profit & Loss loans?
Profit & Loss Loan - Purchase & Rate-Term Guidelines
Apply for a P&L loan
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12–24 months of profit & loss statement, YTD profit & loss (self prepared), Credit report, driver’s license, purchase agreement (purchase) or current mortgage (for refinance).
The absolute minimum credit score is 600 and is only eligible for investment properties with a 40% down payment. The absolute minimum credit score for primary and second homes is 640 with a 70% down payment. Credit scores 720+ have the least down payment requirements.
Yes. Reserves vary based on loan type (primary, second, investment), credit and loan amount from a minimum of 3 months to a max of 12 months
Typically 30 days. We strongly recommend submitting your loan to underwriting for income analysis prior to making an offer to purchase.
Most of our lender partners, apply a 50% expense factor to average monthly deposits. However, this factor can be adjusted with a letter from your CPA.
Rates are typically .25% to .5% higher than conventional. If you would like a rate quote prior to applying please contact your Scout Advisors loan expert
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Refinancing your mortgage may increase costs over the term of your loan. Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Programs and interest rates are subject to change without notice. Contact your Scout Advisors mortgage expert for current rates and to confirm program eligibility.
