If you are self-employed, a business owner, or operate as an independent professional, traditional mortgage requirements may not reflect your true earning capacity. A Profit and Loss (P&L) loan offers a flexible financing option that uses your business income to help you qualify without relying solely on personal tax returns.
At MidAmerica Bancorp, P&L loans are designed to support entrepreneurs and self-employed borrowers whose income is best demonstrated through business performance.
How Profit and Loss Loans Work
Conventional mortgage programs often require multiple years of personal tax returns, which may not accurately reflect cash flow due to business deductions, depreciation, or reinvestment strategies.
A P&L loan allows qualifying borrowers to use a Profit and Loss statement to document income. Underwriting reviews business revenue and expenses to determine qualifying income, providing a clearer picture of ongoing earning potential.
This approach offers an alternative path to financing for borrowers with complex or non-traditional income structures.
Key Features of P&L Loans
- Designed for self-employed borrowers and business owners: Ideal for entrepreneurs, consultants, and independent professionals.
- Uses Profit & Loss statements for income verification: Alternative to traditional personal tax return requirements.
- Flexible underwriting guidelines: Accommodates a wide range of business models and industries.
- Purchase and refinance options available: Including rate-and-term and cash-out refinances, subject to guidelines.
- Competitive loan-to-value options: Varies based on borrower profile and property type.
Benefits of Profit and Loss Loans
- Income evaluated more accurately: Reflects actual business performance rather than net taxable income.
- Reduced documentation complexity: Streamlines qualification compared to conventional programs.
- Faster path to approval: Efficient review process designed for business owners.
- More flexibility for growing businesses: Supports borrowers who reinvest earnings or manage variable income.
Profit and Loss Loans in Licensed States
MidAmerica Bancorp offers Profit and Loss loan solutions in the following licensed states:
- Florida
- Illinois
- Indiana
- Michigan
- Tennessee
- Wisconsin
Our experienced loan professionals understand self-employed income and work closely with you to structure financing aligned with your goals.
Apply for a Profit and Loss Loan Today
If your income is best documented through your business financials, a Profit and Loss loan may be the right solution. The team at MidAmerica Bancorp is here to help you explore your options and move forward with confidence.
Call (708) 237-4050 today to schedule your free consultation.
