Mortgage loan programs
Profit and Loss Mortgage Options for Business Owners
A profit and loss (P&L) mortgage option may be worth discussing when your business earnings are better explained by business financial records. LendEase lists 1- and 2-year P&L options among its Non-QM programs for eligible borrowers.
Which P&L records can be used?
The lender sets the accepted statement period, preparation requirements and any supporting documentation. Ask who may prepare the statement and whether additional business, bank or tax records are required. A P&L statement does not eliminate the need for accurate, supportable information about the business.
What should I prepare for our conversation?
- Your business ownership and operating history.
- The P&L period and preparation standards accepted by the lender.
- Which supporting records are needed to explain revenue and expenses.
How should I compare my options?
Compare P&L qualification with bank statement or full-documentation Non-QM options. A program that fits one business owner may not fit another because business structure, earnings and documentation differ.
Confirm whether the program fits a primary residence, second home or eligible investment property. Availability depends on the lender and transaction. A documentation option does not remove the requirement for accurate information, borrower qualification or underwriting approval.
Subject to lender guidelines, borrower eligibility, property requirements and underwriting approval. Program availability and documentation requirements vary.