The self-employed workforce is expanding rapidly, bringing unique financial challenges when securing funding for properties due to the strict requirements traditional lenders have.
However, there’s good news. A range of alternative loan options exists, specifically designed to accommodate the financial circumstances of self-employed borrowers.
Two options stand out: Profit and Loss (P&L) and Bank Statement loans. Let’s explore how these solutions can help your clients.
Bank Statement Loans
Ideal for a wide array of self-employed borrowers—including gig workers, freelancers, contractors, small business owners, high-commission salespeople, and those with mixed-income households—Bank Statement loans offer a practical solution.
These loans utilize a borrower’s bank statements, typically spanning 12 to 24 months, to assess income. This method provides a more accurate reflection of a borrower’s financial situation, avoiding the limitations of needing to provide traditional W-2 forms or tax returns, which may not fully capture their true earnings.
LendSure’s Bank Statement Program
LendSure’s Bank Statement program streamlines the loan process for self-employed borrowers, delivering highly competitive rates and unsurpassed funding. It also offers loans up to $3,000,000, with LTV ratios reaching up to 90%.
Program Highlights
- All pre-qualifications are performed by experienced, in-house professionals, usually within 24 hours.
- Highly competitive rates and unsurpassed funding times.
- No one-size-fits-all calculations.
- Business bank statements and personal bank statements are permitted.
- Borrower does not have to be 100% owner of the business.
- W-2 with bank statement combinations allowed.
- P&L statements are NOT required.
- The business expense ratio is as low as 10%.
- Multiple business bank accounts are acceptable.
See it in action here.
Profit & Loss Loans
For those who might not find Bank Statement loans fully advantageous, particularly due to significant business expenses that could mask actual income, P&L loans present an alternative. These loans rely on profit and loss statements prepared by a certified public accountant (CPA), offering a detailed view of income and business health.
P&L statements give lenders a clear picture of a business’s profitability, thus providing valuable insights into a borrower’s financial stability.
LendSure’s Profit & Loss (P&L) Program
We’ve upgraded our loan offerings to include this innovative solution. Now, self-employed borrowers with fluctuating seasonal income or cash-based businesses can qualify for loans based on their business’s profit and loss statement, with no employment questionnaire required.
Program Highlights
- Easy review with no bank statements required for loan amounts up to $1,000,000.
- Loan amounts up to $1,500,000 with two months of business bank statements.
- LTV up to 80%, depending on the borrower’s FICO score.
- Cash-out up to $500,000 for LTV up to 65% and $350,000 for LTV up to 75%.
- The P&L must cover the most recent 12 months (dated within 60 days of the closing date).
- The borrower must have been self-employed in the same business for two years, verified by one of the following: a business license, a letter from a tax preparer, and a Secretary of State filing or equivalent.
- Borrower must own a minimum of 50% of the business.
- P&L must have been provided by a CPA, IRS Enrolled Agent, or California Tax Education Council.
Want to learn more about our Bank Statement and P&L Loan programs? Visit LendSure.com or contact our LendSure Account Executives to learn more!
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.
