P&L Mortgage

P&L Mortgage for Self-Employed Borrowers

Use Your Profit & Loss Statement, Instead of Tax Returns

Are you Self-employed, and struggling to get mortgage approval because your tax returns don’t tell the full story?

If you own your own business, you may qualify for a mortgage using just your Profit & Loss statement, without the need for W-2s, paystubs, or even bank statements (in some cases).

What Is a P&L Loan?

A P&L loan allows self-employed borrowers to qualify for a mortgage based on a CPA-prepared Profit & Loss statement. This alternative documentation method is perfect for those whose tax returns underreport income or who prefer more flexible qualification terms.

Who Is It For?

Self-employed individuals
Business owners
Borrowers who can’t qualify with tax returns
Entrepreneurs with solid business performance but complex finances

Highlights:

Max Loan Up to $4 million.
Minimum Loan $150,000.
Credit Score Minimum 720.
Max Loan-to-Value: Up to 80%.
Documentation Type: 1-year or 2-year P&L (CPA-prepared).
Loan Purpose: Purchase, Cash-Out, or Rate-Term Refi.
Property Types: Owner-occupied, second homes, investment.
Credit Seasoning: 2 years for bankruptcy, short sale, foreclosure.
Bank Statements Required. But not required if LTV is less than 70%.
Mortgage guidelines are subject to change. Always verify with your lender.

Benefits of a P&L Loan:

No need for tax returns or paystubs.
Streamlined income documentation for business owners.
Ideal for borrowers with write-offs or fluctuating income.
Can use just 1 year of P&L for faster qualification.

Documentation Requirements:

Tax preparer certified Profit & Loss statement.
No bank statements required if LTV is 70% or lower.
Verification of business ownership.

Gift Money Rules:

For Primary Residence and Second home loans the borrower must have 5% down payment of their own funds + 3 months of the total monthly payment in cash reserves, of their own funds. Then the rest can be gift money.

Investment properties require borrower to have 10% down payment of their own funds plus 3 months of the total monthly payment in cash reserves, of their own funds. Then the rest can be gift money.

Let Your Business Speak for You

Traditional lending can leave self-employed professionals behind. A P&L Loan offers a smarter, more accurate way to qualify—based on your business’s actual performance.