Andrade Real Estate Services

The P&L Only Program is designed for self-employed borrowers who can’t qualify with traditional tax returns or 12-month bank statements. Instead of using deposits or tax transcripts, income is verified through a CPA-prepared Profit & Loss (P&L) statement covering the most recent 12-month period.
If the borrower’s LTV is 70% or below and mid-FICO is 700+, the 3-month bank-statement overlap is not required.

This program is ideal for buyers who:

Are self-employed and have difficulty qualifying with tax returns or limited deposits on bank statements.
Want to avoid providing tax returns or full income documentation.
Have consistent business performance verified by overlapping bank statements or CPA review.

Property Type	Credit Score	Min Down	Max LTV	Notes
SFR (1-4 units)	660+	20%	80%	Property must be in good condition, conform to area, and have no deferred maintenance. No rural properties.
SFR (1-4 units)	700+	30%	70%	For First-Time Homebuyers without 12-month rent history. Max back-end DTI 43%.
Condo (Warrantable)	660+	20%	80%	Non-warrantable condos are not eligible.
Manufactured Home	660+	35%	65%	Doublewide or larger, built after 6/15/76, on a permanent foundation.
Loans < $200k (Purchase)	660+	20%	80%	Max LTV 80% under $200k.
ITIN	700+	25%	75%	Best tier. Owner-occupied.
ITIN	660-699	30%	70%	Mid-tier. Owner-occupied.
ITIN	640-659	35%	65%	Lowest tier. Owner-occupied.

Occupancy Requirement
Primary residence Borrower must intend to occupy the property.
Note Second homes and investment properties are not included in this matrix.

First Time Buyer
Requirement First-time homebuyers with 12 months verified rent history may exceed 70% LTV with a maximum back-end DTI of 50.49%.
Notes Non–first-time homebuyers may qualify with a maximum back-end DTI of 50.49% under the Non-Prime program. First-time homebuyers without 12 months of verified rent history, or those not currently paying rent, are limited to 70% LTV and a maximum back-end DTI of 43%.

Residency Eligibility
Eligible Valid SSN — must have a valid Social Security Number (SSN). Permanent residents — must provide a valid, unexpired Green Card. Non-permanent residents — eligible with valid visa or Employment Authorization Document (EAD). Individuals with work permits — must provide unexpired documentation. ITIN borrowers — must provide IRS ITIN assignment letter plus valid U.S. government-issued photo ID (driver’s license, passport, etc.).
Ineligible Foreign nationals who do not reside in the U.S. are ineligible. Borrowers without a social security number, or with a number that cannot be validated through the SSA are ineligible. Borrowers with diplomatic immunity are ineligible. Borrowers with expired residency or ID documentation are ineligible. Borrowers previously convicted of mortgage fraud are ineligible.

Income Consistency Requirements
Employment History Borrower must have a minimum of 1 year self-employment history, verified by a CPA letter or business license. P&L must cover 12 consecutive months and reflect current, ongoing business activity. Business income must show a stable or increasing trend over the period covered. If multiple businesses or income sources are used, provide a Letter of Explanation (LOE) describing business structure, ownership, and income consistency.
Notes Borrower must own at least 25% of the business used for qualification. P&L income must align reasonably with bank deposits and overall business performance. Large income fluctuations must be explained in an LOE. P&L must be prepared and signed by a licensed CPA or tax preparer who is not employed by the borrower or their business. Up to six (6) returned checks within the past 12 months are acceptable (waived if LTV ≤ 80% and loan ≤ $1.5M).

Income Type	Requirement	Documentation
Profit & Loss (P&L) Only	12-month P&L prepared by a licensed CPA or tax preparer.	CPA-prepared and signed P&L covering the most recent 12 months, on official letterhead. Must include business name, period covered, gross revenue, expenses, and net income.
Bank Statement (Overlap)	3-month overlap required if LTV > 70% or mid-FICO < 700.	Last 3 months of business or personal bank statements verifying deposits consistent with P&L revenue (within 90%).
Ownership Verification	Borrower must own at least 25% of the qualifying business.	CPA letter, business license, or equivalent verification of business ownership and duration.
Self-Employment Verification	Minimum 1 year in business.	Copy of current business license, CPA letter confirming business activity, or permit with issue date.
All Types	Consistency between reported income and business activity.	Letter of Explanation (LOE) if multiple accounts, income fluctuations, or new business setup.

Down Payment Funds
Eligible Sources Borrower’s own funds, Large deposits, Gift funds from family, Retirement (401k / IRA), Sale of assets.
Requirements Funds must be seasoned and verified with at least 2 months of bank statements. Large deposits must be sourced and documented. Gift funds must include a gift letter and proof of transfer (no seasoning required). Retirement funds require proof of withdrawal terms and account statements. Sale of assets requires a bill of sale and proof of deposit.

Gift Funds
Eligible Donors Allowed for down payment and/or closing costs from acceptable sources such as: Spouse or domestic partner, Parent, step-parent, or foster parent, Child, step-child, foster child, or adopted child, Brother or sister, step-sibling, foster sibling, or adopted sibling, Grandparent, great-grandparent, step-grandparent, foster grandparent, or grandchild, Aunt, uncle, niece, nephew, or cousin, In-laws, future in-laws, fiancé or fiancée, ex-spouse, or former relative, Relative of a domestic partner, Godparents.
Ineligible Donors Not allowed as sources of down payment or closing cost funds: Client’s employer, Builder or contractor, Developer.

Reserves
Requirement 6 months reserves required when LTV > 75% and up to 80%.
Note No reserves required when LTV ≤ 75%.

Loan Amounts
Minimum Loan Amount $100,000 minimum.
Maximum Loan Limits $4,000,000 maximum.

Non-Occupant Co-Borrowers
Eligibility Allowed on purchases, Non-occupant co-borrower can contribute part or all of their income toward qualifying, Must be on title and loan, Their income, assets, and liabilities are included in qualification.
Notes These transactions will be allowed to 80% LTV/CLTV, The lowest mid-credit score of all borrowers will be used as the qualifying score, The loan will be priced as a second home, The loan will be treated and disclosed as owner-occupied when one of the borrowers is anticipated to live in the home.

Property Types
Eligible SFRs (Single-Family Residences), PUDs (attached/detached), Condominium (attached/detached), Fannie Mae warrantable, Manufactured Homes (doublewide or larger, built after 6/15/76, on a permanent foundation; moved homes allowed if DMV title is retired).
Ineligible 2–4 Units, Rural properties, Manufactured Homes (Singlewide, or built before 6/15/76, or no permanent foundation, or parks/subdivisions with lot rent.) Non-Warrantable Condominiums (if >50% investor-owned, >15% HOA delinquencies, litigation, or >25% single-entity ownership; unless approved case-by-case), Condo Hotels or Motels (projects operated as hotel/motel, hotel/motel conversions), Commercial property, Vacant land or land development properties.

Third Party Contributions
Maximum Contribution Seller: 3% max: LTV > 80%, 6% max: LTV ≤ 80%. Real Estate Agent / Loan Officer: Total seller + non-seller contributions cannot exceed 6% (≤ 80% CLTV) or 3% (> 80% CLTV), Contributions cannot exceed the borrower’s actual closing costs (NRCC).
Allowed Uses Closing costs, Prepaid items, Discount points, Buydown escrows.

Disclaimer – This matrix was published on 09/20/2025. Program guidelines may have changed since then. Please contact Alexis to confirm the most current requirements. For complete details, refer to the Partner Matrices PDF or reach out directly to Alexis for program-specific guidance.

Primary Residence

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