“I need two years of tax returns.”
A P&L Can Replace Them
With a CPA prepared statement, your returns don’t have to be part of the file.
If your business is profitable but your tax return doesn’t show it, a P&L only loan qualifies you on a profit and loss statement from your CPA. No tax returns, no stacks of bank statements.
A P&L only loan is a non QM mortgage for self employed borrowers that uses a profit and loss statement, usually prepared or signed by a CPA or tax preparer, to document income instead of tax returns. The lender qualifies you on the net profit your business shows.
It's the lightest documentation option for self employed borrowers. Instead of tax returns or months of bank statements, the lender reviews a profit and loss statement covering the last 12 or 24 months, usually prepared or signed by a CPA, enrolled agent, or tax preparer. Your qualifying income is the net profit it shows.
Most lenders want at least two years of self employment, and some ask for a couple of months of business bank statements to back up the P&L. Because the documentation is so light, P&L programs usually need a bigger down payment and carry higher rates than other self employed loans. It's a non QM loan, and every lender prices it differently.
A P&L only loan makes sense when your business is profitable, your CPA can stand behind the numbers, and your tax returns or bank statements don't tell the story cleanly. That's common when you moved money between accounts, had a big one time expense, or recently changed how your business is set up.
It's also the fastest path when you want the least paperwork. One statement from your CPA does most of the work, instead of a pile of returns or 24 months of deposits.
If you can qualify with a bank statement loan, it will often have better pricing and a smaller down payment, so we compare both. And if your tax returns already show enough income, a conventional loan will usually cost the least.
“I need two years of tax returns.”
With a CPA prepared statement, your returns don’t have to be part of the file.
“My bank statements have to be perfect.”
A P&L only loan qualifies on net profit, not every deposit.
“Less paperwork means less approval.”
Lenders still verify you, they just accept different proof.
Here’s the math on an example with a 12 month profit and loss statement.
Example only. Lenders set their own rules on who prepares the P&L and what supporting documents they need.
Three self employed programs, from lightest to most detailed documentation.
Handle these before you shop.
Make sure they’re willing to prepare or sign the P&L the lender needs.
Your qualifying income is the profit, not the revenue.
Light documentation usually means more down.
If your deposits are clean, a bank statement loan may price better.
Here’s exactly what happens after you reach out.
Tell us the price range you’re shopping, your credit range, and how much you have saved. We start with a soft credit check, so your score isn’t touched.
Start My Pre-ApprovalSend your pay stubs, W2s, and bank statements. We compare your loan options side by side and send a letter with your max price to hand your Realtor.
Start My Pre-ApprovalOnce you’re under contract, we order the appraisal, work with title, and take your file through underwriting to closing day.
Start My Pre-Approval
A P&L only loan is a non QM mortgage for self employed borrowers that uses a profit and loss statement, usually prepared or signed by a CPA or tax preparer, to document income instead of tax returns. The lender qualifies you on the net profit your business shows.
Most lenders require it to be prepared or signed by a licensed CPA, enrolled agent, or tax preparer who knows your business. Some accept a borrower prepared P&L with extra documentation.
Usually the last 12 or 24 months, depending on the lender.
Some lenders ask for a couple of months of business bank statements to support the P&L. Others don't. It depends on the program.
Most lenders want at least two years of self employment, verified by a CPA letter, business license, or similar proof.
It varies, but P&L only programs often need more down than other self employed loans, commonly 15 to 20% or more, especially with the lightest documentation.
Usually, yes. Because the documentation is the lightest of the self employed options, rates typically run higher than bank statement or conventional loans.
Yes. P&L programs can be used for primary homes, second homes, and investment properties, depending on the lender.
Yes. If your tax returns later show enough income, you can refinance into a conventional loan to get a lower rate.
These are the loans self employed borrowers compare it with.
Qualify on 12 or 24 months of deposits instead of tax returns.
Learn More Self EmployedQualify on your 1099s instead of full tax returns.
Learn More Non QMLoans built for borrowers outside the standard box.
Learn More InvestorQualify a rental on its rent instead of your income.
Learn More BuyThe lowest cost option when your returns show your income.
Learn More BuyKnow your number before you shop.
Learn MoreFifteen minutes gets you a real number instead of a guess, and the soft credit check costs your score nothing.
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Real families we have helped get from pre-approval to keys in hand.
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