Refinancing as a Business Owner: Look Beyond Tax Returns
A Refinance starts with today’s goals
A refinance may be considered for different reasons: reviewing the current loan structure, changing the term, or evaluating whether available equity can support a financial goal. For a self-employed homeowner, the first question is often how current business income will be documented. The mortgage strategy should begin with the borrower's objective and complete financial picture—not a single document in isolation.
Rate snapshot — October 26, 2026: Self Prepared P&L/WVOE rates start at 6.250% for the 5/6 ARM and 6.500% for the 7/6 ARM, before applicable adjustments. The 5/6 ARM is listed in CA, NV and TX; the 7/6 ARM in CA, CO, GA, IL, TX, VA and WA. Actual pricing depends on the borrower and loan scenario; APR may vary. Rates and fees are subject to change.
A self-prepared P&L may create another route
AAA Lendings' Self Prepared P&L/WVOE program offers eligible self-employed borrowers an alternative to relying on a CPA-prepared P&L. A current self-prepared profit and loss statement can help present the business's year-to-date performance in an organized format. Supporting business records and underwriting review are still required, and the program may call for a CPA letter or other documentation depending on the scenario.
Match the ARM to the expected holding period
The program includes a 5/6 ARM and a 7/6 ARM. The 5/6 ARM has an initial five-year rate period, while the 7/6 ARM has an initial seven-year period. After the initial period, both structures can adjust every six months under their terms. A refinance decision should account for closing costs, how long the borrower expects to keep the loan, potential future rate changes, and the risk that a later refinance may not be available on expected terms.
Review transaction-specific requirements
Rate-and-term and cash-out refinances may be subject to different requirements. The current program matrix includes seasoning and other conditions for certain cash-out scenarios, as well as limits based on occupancy, property type, loan amount, and LTV. Borrowers should not assume every property or existing loan will qualify. A lender review can identify relevant restrictions before the borrower commits to a new structure.
Compare the full financial outcome
The right refinance is not simply the one with the lowest initial payment. Consider total costs, the remaining loan balance, reserves, future payment flexibility, and the reason for refinancing. AAA Lendings can review the scenario under current guidelines and help determine whether the Self Prepared P&L/WVOE program is appropriate.
Before refinancing, review your objective, documentation, costs, and future payment risk with a mortgage professional.
Program availability, qualification, rates and terms vary by state, borrower profile, property type, loan purpose, and current guidelines. Rates and fees are subject to change without notice. Contact AAA Lendings for current program details.