Bank Statement & P&L Loans

Your Tax Returns Are Lying About You. We Know.

Bank statement and P&L loans for self-employed borrowers whose returns understate their real income.

Self-employed borrowers can qualify on bank statements or a P&L instead of tax returns, up to 85 to 90% of the price on strong files. Scores down into the 600s are considered.

The short answer

If you’re self-employed, your CPA’s job is to make your taxable income as small as legally possible. A traditional mortgage lender’s job is to qualify you on that same number — and that’s the whole problem. Alt-doc loans solve it: instead of tax returns, we qualify you on bank statements (usually 12 or 24 months of deposits) or on a profit & loss statement. No returns, no pretending your business makes less than it does. Lawton Building and Loan runs these programs for home buyers and for investors, in Texas and most states we serve.

The options

• Bank statement loans — qualify on 12 or 24 months of personal or business bank statements. We average the deposits; that’s your income.
• P&L-only loans — qualify on a profit & loss statement for your business, without handing over full tax returns.
• 1099 income loans — for contractors and gig earners paid on 1099s instead of W-2s.
• Asset-based options — for borrowers with strong assets and non-traditional income pictures.

Who this fits

• Business owners whose write-offs bury their real income.
• Realtors, truckers, contractors, creators, stylists, drivers — anybody paid by 1099 or through their own company.
• Self-employed investors buying rental property who don’t want the DSCR-only route.
• Borrowers who were told “your income doesn’t qualify” by a bank that only reads tax returns.

The honest part

Alt-doc loans trade paperwork for price: the rate and down payment are usually less favorable than a full-documentation loan, because the lender is taking your deposits’ word for it. For most of our self-employed borrowers it’s still the difference between buying and not buying — but we’ll show you both routes if you qualify for both, and tell you which one we’d take.

One more thing: if your books are a mess, the P&L route needs a clean, believable P&L. Our sister company, Sewell Business Services, prepares lender-ready P&Ls and handles taxes for a lot of our borrowers — (940) 255-8590. Getting the paperwork right first makes the loan part a whole lot easier.

How it works

1. Call or text (817) 862-6922. Tell us what you do and roughly what actually comes in every month.
2. We pick the lane — bank statements, P&L, or 1099 — based on which one makes your income look like what it really is.
3. Send statements, not returns, and we run the file.

FAQ

Do I really not need tax returns? On bank statement and P&L-only programs, correct — no personal or business tax returns. The lender verifies income from deposits or the P&L instead.

How many months of bank statements? Usually 12 or 24 months. Twenty-four months generally paints the stronger picture if your income has been growing.

Can I use business bank statements? Yes — business or personal accounts can work, depending on the program and how your business is set up.

Is this only for buying a home to live in? No. Alt-doc works for investment properties too. If the property itself has strong rent, also ask us about DSCR loans, which skip personal income entirely.

What credit do I need? Requirements vary by program and are generally more flexible than most people expect — but a stronger score gets you better terms. Call and we’ll tell you straight where you stand.

Start here

Call or text (817) 862-6922, or visit lawtonbuildingandloan.com.

Educational information only — not a commitment to lend. All loans are subject to credit approval, and programs change.

— Joel Lawton, Lawton Building and Loan, NMLS #380245