P&L Loans: Home Financing for Business Owners & Self-Employed

• P&L Loans are specialized mortgages designed for self-employed borrowers and small business owners. They use your business's profit and loss (P&L) statements to verify your income, rather than traditional tax returns and W-2s. This allows for a more accurate representation of your financial situation, especially if you have significant business deductions or fluctuating income.

P&L loans are ideal for:

• Self-employed professionals: Freelancers, consultants, sole proprietors, and partners in a partnership.
• Small business owners: Owners of corporations, S corporations, or LLCs.
• New businesses: Entrepreneurs with less than two years of tax history.
• Businesses with write-offs: Owners who take advantage of legitimate tax deductions.

Instead of focusing on taxable income, P&L loans assess your business's profitability by analyzing your P&L statements. Lenders typically average your net income over a 12 or 24-month period to determine your qualifying income. This provides a more realistic picture of your financial strength, especially if your taxable income is lower due to deductions.

P&L loans offer several benefits for business owners:

• Simplified Income Verification: No need for complex tax returns or W-2s.
• Flexible Underwriting: We understand the unique financial situations of business owners and offer more lenient guidelines.
• Faster Approvals: Streamlined processes for quicker loan decisions.
• Competitive Rates: Ameritrust Mortgage offers competitive interest rates on P&L Loans.
• Diverse Property Options: Use the loan for a primary residence, second home, or investment property.

Typical documentation includes:

• P&L Statements: 12 or 24 months of business P&L statements, prepared by a CPA or tax professional.
• Bank Statements: Recent business bank statements to verify deposits and cash flow.
• Business License: Documentation proving your business's legal existence.
• Other Financial Documents: Ameritrust Mortgage offers competitive interest rates on P&L Loans.
• Diverse Property Options: May include balance sheets, debt schedules, and asset statements.

Our experienced underwriters carefully review your P&L statements, considering factors like:

• Net income: The profit your business generates after expenses.
• Cash flow: The movement of money in and out of your business.
• Business stability: The length of time your business has been operating and its overall financial health.

While P&L loans offer flexibility, they may come with:

• Slightly Higher Interest Rates: Due to the perceived higher risk associated with alternative income verification.
• Additional Documentation: You may need to provide more business-related documentation than with traditional loans.

Applying is simple! Contact Ameritrust Mortgage to discuss your needs and goals. Our experienced loan officers specialize in P&L Loans and can guide you through the entire process, from pre-qualification to closing. We'll work with you to find the best loan solution for your unique business and financial situation.