I’m Michael DiVita (DRE #01372066 | NMLS #241655), DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. When the bank says no, I find a way. Call (800) 239-1103. Closed November 6, 2026.
The short answer: my client was buying a $1.4 million rental property in Palm Springs with 20% down. He’s self-employed with multiple businesses, his credit score was under 680, and he’d been in escrow since March. Six mortgage brokers had tried and couldn’t close it. He’d already released his deposit to the seller and was paying a daily penalty to keep the deal alive. We qualified him with a profit and loss statement, structured the loan with interest-only payments, and funded it on Friday, right up against the lender’s 1 p.m. funding cutoff. It wasn’t easy. It was messy. But we got it done where others failed.
The Lead That Went Quiet
About three months ago, this buyer emailed me. We went back and forth on his scenario over email, and then he stopped responding. I followed up a few times. Nothing.
That happens. People shop around, and that’s fine.
Then about 45 days ago, my phone rang. It was him. He’d gone with another broker, and they couldn’t get it done. I had to go back through our old emails to pull his scenario back up.
Then I Heard the Rest of the Story
This is the crazy part.
- He’d been in escrow since March 2026. Eight months.
- He’d been through six other mortgage brokers. None of them closed it.
- He was paying the seller a daily penalty for every day the closing slipped.
- He’d already released his deposit to the seller. If the deal fell apart, that money was gone.
So this wasn’t just a loan. Every day cost him money, and walking away would have cost him a lot more.
Why This Loan Was Hard
Any one of these on its own is workable. Put them all in one file and a lot of lenders say no:
- Self-employed, with multiple businesses. That meant a stack of tax returns, personal and business, for several companies. Complicated to underwrite the traditional way.
- Credit under 680. That cuts the list of lenders way down, and the ones left price it higher.
- Investment property. A rental, not a home he’d live in, so the rules are stricter.
- Loan size. $1.4 million purchase with 20% down is a $1,120,000 loan.
- Interest-only payments. Fewer lenders offer it, especially with these other factors.
How We Qualified Him: A Profit and Loss Loan
Instead of trying to untangle all those tax returns, we qualified him with a profit and loss statement. A P&L loan is a non-QM program built for self-employed borrowers. The lender looks at what the business actually brings in, usually on a P&L prepared or verified by a CPA or tax preparer. Requirements vary a lot by lender, which is exactly why it matters who you’re working with.
The interest-only payment kept the monthly cost down on a rental, which helped the numbers work.
Finding a lender who would take this combination was the job. As a broker, I work with more than 40 wholesale lenders, so I’m not stuck with one set of rules. That’s the difference between “no” and “here’s how.”
Down to the Wire
It came down to Friday. The lender had a 1 p.m. funding cutoff. Miss it, and the closing slides to the next week, and the daily penalty keeps running. We got it funded in time.
It wasn’t pretty. Files like this never are. But it closed.
What I’d Tell Anyone Stuck in Escrow
- Don’t wait eight months to get a second opinion. If your loan keeps stalling, call someone else early, before deposits go hard and penalties start.
- Know which type of loan actually fits you. If you’re self-employed and your tax returns don’t tell the whole story, look at bank statement and P&L programs from the start.
- Credit under 680 isn’t the end. It narrows your options. It doesn’t eliminate them.
- Be careful releasing your deposit. Once it’s released, your loan problems become very expensive.
- Funding cutoffs are real. Lenders fund by a set time. Plan your last week of escrow around it.
We get hard deals done. Oh yeah, we do easy ones too.
About this case study: this is my own file, closed November 6, 2026. Details are from the actual transaction; the borrower and property aren’t named for privacy. Loan programs, rates and requirements vary by lender and change often, so treat this as an example, not a guarantee.
Frequently Asked Questions
What is a profit and loss (P&L) loan?
A non-QM mortgage for self-employed borrowers that qualifies you based on a profit and loss statement for your business instead of tax returns. Lenders often require the P&L to be prepared or verified by a CPA or tax preparer, and requirements vary by lender.
Can I buy an investment property with a credit score under 680?
Often, yes, through non-QM lenders, though fewer lenders will do it and pricing is higher. Expect a larger down payment and reserve requirements.
Can I get an interest-only loan on a rental property?
Yes. Some non-QM and DSCR lenders offer interest-only payments for a set period on investment properties, which lowers the monthly payment during that time.
What should I do if my mortgage broker can’t close my loan?
Get a second opinion quickly, before your deposit goes non-refundable and before extension penalties add up. A broker with access to many wholesale lenders can often find a program that fits when one lender’s rules don’t.
Related Resources
- Self-Employed Mortgages in California: Every Way to Qualify
- Non-QM Mortgages in California
- Bank Statement Loans in California
- Investment Property Loan Options in California
- 40-Year and Interest-Only Mortgages in California
- Case Study: LA Fourplex DSCR Loan, Approved on Rents
- Case Study: $1.14M Palm Springs Leased Land Investment Loan
- Case Study: Palm Springs Condo HOA Approval
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
