P&L Loan Program (Profit & Loss Mortgage Loans)

A P&L Loan allows self-employed borrowers to qualify for a mortgage using a CPA- or EA-prepared Profit & Loss Statement instead of tax returns, W-2s, or pay stubs.


This program is ideal for business owners who show strong revenue but write off many expenses for tax purposes.

When a P&L Loan Makes Sense

You may be a good candidate for a P&L Loan if:

  • You have substantial gross income but write off too many expenses to qualify using tax returns.

  • You have been self-employed for at least 2 years.

  • You have at least 20% down payment or 20% equity for a refinance.

  • The home will be owner-occupied (primary residence).

  • Your FICO® score is 640 or higher.

  • You need a loan amount up to $1,500,000.

How Income Is Calculated

The lender uses the adjusted gross income shown on the Profit & Loss statement:

Total Income – Total Expenses = Qualifying Income

This allows borrowers with significant tax write-offs to qualify based on actual operating performance, not taxable income.

P&L Documentation Requirements

To be accepted, the Profit & Loss Statement must:

  • Be prepared and signed by a CPA or Enrolled Agent (EA)

  • Be on the preparer’s official letterhead

  • Include their license number

  • Reflect accurate business income and expenses for the period used (typically 12 or 24 months)

Additional documents may be requested to support the P&L, such as business bank statements or year-to-date reports, depending on the program.

Why Borrowers Choose a P&L Loan

  • No tax returns or W-2 income required

  • Qualify using true business performance

  • Ideal for entrepreneurs, contractors, consultants, and small business owners

  • Flexible and easier qualification compared to traditional full-documentation loans

  • Useful when tax returns show low taxable income due to legal write-offs

Additional documents may be requested to support the P&L, such as business bank statements or year-to-date reports, depending on the program.

Is a P&L Loan Right for You?

This program is ideal if you:

  • Have strong business income

  • Use legal deductions that reduce taxable income

  • Prefer not to provide extensive tax documentation

  • Are purchasing or refinancing a primary residence

  • Want a simple, streamlined alternative to traditional underwriting

Additional documents may be requested to support the P&L, such as business bank statements or year-to-date reports, depending on the program.

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