We understand the challenges faced by self-employed individuals when applying for a mortgage to finance the purchase of a home or to refinance an existing loan. When self-employed borrowers contact MortgageDepot, one of the most frequent concerns we hear has to do with lenders requiring bank statements to qualify for the financing our borrowers need. We have a solution for these borrowers with a mortgage program using profit and loss to qualify for the loan.

Profit and loss statements

A profit and loss statement offers a method of showing the net income of a business by taking into account its revenue and offsetting expenses. It is a tool for a self-employed owner of a business or professional practice to evaluate profitability and determine the most effective means of improving it through a manipulation of revenues and expenses.

Income tax returns and bank statements may not accurately reflect the income of a self-employed individual. The reason for this relates to the common practice of deducting business expenses to reduce a business owner’s personal income tax liability. This is why borrowers at MortgageDepot benefit may benefit by using a profit and loss to quality for the loan instead of relying on bank statements and income tax returns.

MortgageDepot.com mortgages using P&L only

As a mortgage broker company, we work with many lenders to meet the specific needs of each of our borrowers. Borrowers interested in our program using P&L only should note the following features:

  • Applicants need not produce bank statements.
  • P&L statements must be produced by a certified public accountant.
  • Borrowers may apply and qualify for mortgages up to $6 million.
  • Applicants need not produce tax returns.
  • Borrowers need not sign or submit an IRS Form 4506-T, request for transcript of tax return.
  • All or part of the down payment may be in the form of a gift.
  • Funds may be used for to refinance or purchase a second home or investment property in addition to a primary residence.
  • Borrowers may take up to $500,000 cash back.

Each of our loan officers has all of the underwriting guidelines to review with borrowers.

Borrowers interested in using profit and loss to qualify for the loan they need should speak with one of our loan officers by calling us at (800) 535-0720. Information may also be obtained by visiting us at MortgageDepot.com.

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