EP. 5 - The Profit and Loss Loan, How 1099 and Self Employed Borrowers Qualify Without Tax Returns

If you're self employed or earning 1099 income, you already know the struggle of qualifying for a mortgage with traditional lenders. Your CPA uses legal write offs to reduce your taxable income, but banks rely on that reduced number to decide whether you qualify. The result is the same problem many entrepreneurs face. You are successful in your business, yet the bank still says you do not qualify.

In this episode, Ryan Marks breaks down the Profit and Loss Loan, one of the most powerful Non QM mortgage programs for self employed and 1099 borrowers. Instead of using your tax returns, lenders qualify you based on a professionally prepared year to date P and L statement, supported by 12 months of bank statements. This makes it possible for business owners, contractors, and entrepreneurs with strong revenue but low taxable income to finally get approved for a home loan.

You will learn how lenders calculate income from your P and L, why no tax returns, W2s, or pay stubs are required, and how this loan helps self employed buyers qualify for a home or refinance without the strict guidelines used in conventional lending. We also cover documentation requirements, qualification basics, and how this program works for primary homes, second homes, and investment properties.

If you have ever been told your tax returns do not show enough income, this episode explains why the Profit and Loss Loan may be the best path to homeownership for self employed borrowers and 1099 earners.

In This Episode:

• What the Profit and Loss Loan is and how lenders calculate usable income
 • Why no tax returns, W2s, or pay stubs are needed to qualify
 • Documentation requirements for self employed and 1099 borrowers
 • How this loan helps business owners with high revenue and low taxable income
 • Using a P and L mortgage for purchase, rate term refinance, or cash out

Tools and Resources

Visit https://www.seimortgage.com
for Non QM loan programs, calculators, and resources for self employed and 1099 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