EP. 4 - Profit and Loss Loan: A Simple Path for the Self Employed

For many self-employed borrowers, tax returns often to a tell a different. Your CPA uses deductions within your legal right to reduce taxable income, but traditional lenders rely on that reduced number to determine your eligibility for a mortgage. The result is the same frustrating outcome many entrepreneurs face. You're successful, but your tax returns don't convey the real value of your business, and the bank says you do not qualify. 

In this episode, SEI Mortgage Podcast breaks down the Profit and Loss Loan, one of the most flexible Non QM programs available for small business owners, sole proprietors, and entrepreneurs with little to no taxable income. Instead of reviewing your tax returns, lenders qualify you using a profit and loss statement. 

You will learn how lenders calculate income from your profit and loss, why no tax returns, W2s, or pay stubs are required, and how this loan helps self employed borrowers buy or refinance without jumping through traditional underwriting hoops. We also cover qualification basics, documentation requirements, and how this program can be used for primary home, second home, and investment property.

If you have ever been told you do not qualify because of your tax returns, this episode explains why the Profit and Loss loan may be the solution you have been missing.

In This Episode:

• What the Profit and Loss Loan is and how it works
 • How P and L income is calculated and verified
 • Why no tax returns are required
 • When to use a 12 month versus year to date Profit and Loss
 • How this program helps entrepreneurs with high revenue and low taxable income
 • Using the Profit and Loss loan for purchase, refinance, or cash out refinance 

Tools and Resources

Visit www.seimortgage.com for Non QM program guides, calculators, and resources for self employed borrowers.

DISCLAIMER - Ryan Marks is a Licensed Mortgage Loan Originator (NMLS #519138) operating under The Turkey Foundation, Inc. (NMLS #236669), an Equal Housing Lender. Ryan conducts mortgage origination under his DBA, The Everyday Lending Group. SEI Mortgage is an educational brand only. It is not a mortgage lender, does not issue pre-approvals or loan estimates, and does not extend credit in any form. All information provided in this podcast is for educational and informational purposes only. Nothing in this episode should be interpreted as: Legal advice Financial advice Tax advice Real estate advice A commitment to lend An offer, quote, or guarantee of loan terms Loan guidelines, program availability, rates, underwriting rules, and qualification methods - especially for Non-QM mortgage programs - can change at any time and may vary by lender, investor, market conditions, and state regulations. Examples given are hypothetical and may not reflect actual terms available to any borrower. Listeners should independently verify all calculations, assumptions, and program details with qualified professionals. Always consult with a licensed mortgage lender, real estate agent, CPA, financial advisor, or attorney before making decisions related to home financing, investing, or credit. This podcast is not affiliated with, endorsed by, or acting on behalf of Fannie Mae, Freddie Mac, FHA, VA, HUD, or any government agency. No government agency has reviewed or approved the content of this recording. The Turkey Foundation, Inc. 1805 E Garry Ave, Santa Ana, CA 92705 Equal Housing Lender