Brought to you by 7th Level Mortgage LLC
Brought to you by 7th Level Mortgage LLCApply Now Established business owners
A P&L-only path may help an established self-employed borrower document current business income without relying primarily on tax returns or deposit averaging.
This method is for a self-employed borrower with documented ownership of at least 50% in an operating business. Express requires at least eighteen months of self-employment in the current profession. Prime and Express have separate credit, leverage and income-calculation limits; the complete transaction must fit the selected tier.
An independent, eligible CPA, enrolled agent or CTEC preparer must prepare the statement and have active credentials. Express accepts a recent twelve- or twenty-four-month P&L ending within sixty days of the note date and applies a 15% expense floor. Prime uses twelve months and the lower of ownership-adjusted monthly net income or the income disclosed on the initial signed application. A PTIN alone does not establish preparer eligibility.
The underwriter still evaluates business history and stability, ownership, income trend, credit, debts, housing history, assets, reserves, occupancy, property type, loan purpose and overall ability to repay. A P&L alone does not establish approval, and program rules may cap the income used or require corroborating business evidence.
Know the business formation date, ownership percentage, industry, preparer's credentials, P&L period, gross revenue, expenses, net income, recent changes, available reserves, estimated credit range and complete property and transaction details. Do not submit accounting records through the public Finder.
The business must be independently validated, ownership must be documented, and the preparer must meet independence and attestation rules. Express may require three recent months of bank statements when business existence cannot otherwise be supported. Inflated or inconsistent income, missing expenses and unverifiable activity require further review.
Frequently asked questions
An independent eligible CPA, enrolled agent or CTEC preparer is required. Prime uses twelve months; Express permits twelve or twenty-four months and requires active credentials and preparer independence.
No. Express can require three recent months of bank statements when business existence cannot otherwise be supported. Funds to close and other required assets also need verification.
General information is useful. A mortgage professional can help you evaluate the facts that apply to you.
Contact 7th Level Mortgage