P&L Loans
Mortgage Qualification Using Profit & Loss Statement
Perfect for Self Employed Borrowers
What is a P&L Only Loan?
A Profit & Loss (P&L) Loan
is a mortgage option designed specifically for
self-employed borrowers,
entrepreneurs, and
business owners who may not have traditional income documentation such as W-2s or tax returns. Instead of using these, borrowers can qualify based on a
CPA-prepared P&L statement, showing their
business’s actual revenue and expenses.
self-employed borrowers
maximize tax deductions, which can lower their reported income on tax returns.
P&L loans allow them to qualify based on actual earnings rather than adjusted taxable income.
P&L Loans vs. Traditional Mortgages
| Feature | P&L Based Loan | Traditional Loan |
|---|---|---|
| Income Verification |
CPA-Prepared Profit & Loss Statement |
Tax Returns, W-2s, Pay Stubs |
| Best For |
Self-Employed, Business Owners, Entrepreneurs |
W-2 Employees with Stable Pay |
| Max LTV |
85% |
97% (Conventional) |
| Debt-to-Income Ratio (DTI) |
Flexible |
Strict (Max 43%) |
| Property Types |
Primary, Second Home, Investment |
Primary, Second Home, Investment |
P&L Loan Program Details
| Feature | P&L Based Loan |
|---|---|
| Loan Type |
Profit and Loss Statement Based Mortgage Loan |
| Best For |
Self-Employed, Business Owners, Investors |
| Max LTV |
85% |
| Min Fico Score |
660 |
| Income Verification |
CPA Prepared Profit & Loss Statement |
| Property Types |
Primary, Second Home, Investment |
| Interest-Only Option |
Yes |
| Cash-Out Refinaincing? |
Yes |
| Prepayment Penalty |
Varies by Loan Type |
Why Use a P&L Only Loan?
Benefits of a P&L Loan
- No Tax Returns or W-2s Required – Qualify using only a CPA-prepared P&L statement.
- Higher Loan Amounts – Up to 85% loan-to-value (LTV).
- Flexible Qualification – Ideal for self-employed professionals with variable income.
- Cash-Out Refinance Available – Convert home equity into cash for investments or business growth.
- Works for Primary, Second Home, & Investment Properties.
P&L Loans are Great for Self-Employed Borrowers
Unlike traditional loans, P&L Based Mortgages cater to:
- Gig Economy Workers
- Freelancers & independent contractors
- Real estate investors
- Commission-based earners
- Small business owners
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
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Frequently Asked P&L Loan Questions-FAQ
How do I qualify for a P&L loan?
To qualify, you need at least 1-2 years of self-employment income, a CPA-prepared Profit & Loss statement, and a minimum credit score of 660.
Do I need tax returns for a P&L loan?
No! P&L loans do not require tax returns—only a Profit & Loss statement prepared by a CPA.
Can I use a P&L loan for an investment property?
Yes! This loan is available for primary residences, second homes, and investment properties.
What credit score do I need for a P&L loan?
Most programs require a minimum FICO score of 660, though higher scores may qualify for better rates.
Can I do a cash-out refinance with a P&L loan?
Yes! Borrowers can cash out home equity with a P&L loan, depending on LTV limits and credit qualifications.
Want to connect with a licensed
Non-QM Lender?
Have Questions? Contact us Today!
Need a Conventional Lender?
Check Out These Other Resources
Explore Your P&L Based Lending Options
we specialize in connecting you with a licensed non-QM loan expert to fit your exact needs. Whether you're looking for a P&L only Loan, Bank Statement Loan, DSCR Loan can help! We can connect you to the right lender for the loan you need.