Traditional mortgage qualification often feels like trying to fit a square peg into a round hole for your self-employed clients.
The successful restaurant owner who keeps meticulous profit and loss statements shows modest income after deductions. The consultant with growing revenue faces scrutiny over variable monthly deposits. The contractor with a thriving business struggles to document income from multiple sources.
These aren’t problem clients – they’re opportunity clients who need a different solution.
LendSure Mortgage Corp. (LendSure’s) Profit & Loss (P&L) Loan Program bridges this gap, allowing you to qualify self-employed borrowers based on their business performance rather than tax return limitations. It’s not about bending rules but recognizing that entrepreneurial income doesn’t always fit neatly into conventional lending boxes.
Understanding P&L Loans: A Solution Tailored for Self-Employed Borrowers
P&L loans represent a specialized mortgage option designed specifically for business owners who may not qualify through conventional income verification methods. Unlike traditional loans that rely heavily on tax returns (which may not reflect a business’s true earning potential due to legitimate write-offs), P&L loans focus on a business’s revenue and cash flow, as demonstrated in their profit and loss statements.
This approach acknowledges many self-employed borrowers’ financial reality: their business may be thriving, but their taxable income appears lower due to business deductions and expenses.
How LendSure’s P&L Loan Program Works
LendSure’s streamlined P&L Loan Program offers a simplified qualification process that centers on the borrower’s business performance rather than personal tax returns. Here’s what makes this program stand out:
Key Program Features
- Simplified Documentation: Loan amounts up to $1,000,000 with no bank statements required, making the process streamlined and efficient
- Higher Loan Amounts Available: Up to $2,000,000 with just two months of business bank statements
- Generous LTV Options: Up to 80% loan-to-value ratio, depending on the borrower’s credit score
- Cash-Out Flexibility: Access up to $500,000 for LTVs up to 65%, or $350,000 for LTVs up to 75%
- Reduced Paperwork: No self-employment questionnaire required, further streamlining the application process
Qualification Requirements
To qualify for LendSure’s P&L Loan Program, borrowers must meet the following criteria:
- Provide a profit and loss statement covering the most recent 12 months (dated within 60 days of closing)
- Submit the two most recent months of business bank statements (P&L+ Program)
- Demonstrate at least 2 years of self-employment in the same business, verified through:
- Business License
- Letter from tax preparer
- Secretary of State filing or equivalent documentation
- Own a minimum of 50% of the business
- Have a P&L prepared by a qualified professional:
- CPA
- IRS Enrolled Agent
- California Tax Education Council
Why Brokers Should Offer P&L Loans to Self-Employed Clients
As a mortgage broker or loan officer, offering P&L loans through LendSure expands your ability to serve a growing and often underserved market segment. Here’s why this program deserves a place in your lending toolkit:
Tap Into an Expanding Market
The self-employed workforce continues to grow, with millions of Americans choosing entrepreneurship over traditional employment. By offering solutions tailored to this demographic, you position yourself to capture business in a competitive market.
Provide Solutions for Challenging Scenarios
Self-employed borrowers with seasonal income fluctuations or cash-intensive businesses often struggle to find suitable mortgage options. LendSure’s P&L Program gives you the tools to help these clients overcome traditional lending barriers.
Offer Flexibility When It Matters Most
P&L loans provide an alternative qualification path that recognizes the unique financial structures of small businesses. This flexibility can be the difference between approval and denial for many self-employed borrowers.
Build Your Reputation as a Problem-Solver
By becoming proficient in P&L loan options, you establish yourself as a go-to resource for self-employed clients. This specialized knowledge can enhance your reputation and lead to referrals within entrepreneurial communities.
Identifying Ideal Candidates for P&L Loans
To maximize the effectiveness of LendSure’s P&L Loan Program, it’s essential to identify which clients would benefit most from this option. Consider recommending this program to:
- Business owners with significant tax write-offs who show lower income on tax returns despite healthy business revenue
- Seasonal business operators whose income fluctuates throughout the year
- Cash-intensive business owners who may have difficulty documenting all income through traditional means
- Recently self-employed professionals who have established their business within the past few years
- Entrepreneurs seeking to consolidate business debt through a cash-out refinance
P&L Loans vs. Bank Statement Loans: Understanding the Difference
While both P&L loans and bank statement loans offer alternatives to traditional income verification, they serve slightly different purposes:
P&L loans focus on the business’s reported profit and loss, providing a concise snapshot of business performance through professionally prepared statements. These loans are particularly suitable for businesses with clean, straightforward accounting.
Bank statement loans, by contrast, analyze deposits over a longer period (typically 12-24 months) and may be more appropriate for businesses with complex cash flow patterns or multiple income sources.
By understanding these distinctions, you can better match clients with the mortgage solution that best fits their specific financial situation.
Partnering with LendSure for P&L Loan Success
LendSure’s commitment to serving the self-employed market makes them an ideal partner for brokers looking to expand their non-QM lending options. Their streamlined process and competitive program features enable you to offer solutions that truly address the needs of entrepreneurial borrowers.
The P&L Loan Program represents just one component of LendSure’s comprehensive approach to non-traditional lending, reflecting their understanding of today’s diverse borrower landscape.
Getting Started with P&L Loans
Ready to help your self-employed clients achieve their homeownership goals through LendSure’s P&L Loan Program? Contact LendSure today to learn more about program details, submission requirements, and how to position these loans effectively with your clients.
By adding P&L loans to your lending toolkit, you’re not just offering another mortgage product – you’re providing a pathway to homeownership for self-employed borrowers who might otherwise struggle to qualify through conventional means.
The LendSure Way
It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.
Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.
