P&L Only Mortgage Loans
P&L Only Mortgage Loans for Self-Employed Borrowers
For self-employed professionals who manage successful businesses but don’t have traditional income documentation, a P&L only mortgage offers a practical and flexible path to homeownership. With this loan type, you can qualify based on a Profit and Loss statement prepared by a licensed tax professional—no tax returns or bank statements required.
What Is a P&L Only Mortgage?
A P&L (Profit and Loss) only mortgage is a type of non-QM (non-qualified mortgage) loan that allows borrowers to use a CPA- or tax preparer-prepared profit and loss statement as the sole source of income documentation. Lenders use this report to assess business revenue, expenses, and net income to determine loan eligibility.
This solution is ideal for business owners who reinvest heavily in their companies or use tax strategies that lower reported income on returns.
Who Should Consider a P&L Only Mortgage?
This loan option is suitable for:
- Self-employed individuals and sole proprietors
- Business owners who prefer not to submit tax returns
- Borrowers with complex or fluctuating income
- Professionals whose tax deductions significantly reduce net income
Key Benefits of P&L Only Mortgages
- No tax returns or bank statements required
- Qualify using a CPA-prepared profit and loss statement
- Streamlined documentation process
- Available for primary residences, second homes, and investment properties
- Flexible terms tailored for entrepreneurial borrowers
Typical Requirements for a P&L Only Mortgage
- Profit & Loss statement covering at least 12 months
- Statement must be prepared and signed by a licensed CPA or tax preparer
- Proof of self-employment (business license, CPA letter, etc.)
- Minimum credit score varies by lender (typically 620+)
- Down payment between 10%–25% depending on borrower profile
- Consistent business operation history
Note: Loan approval and terms vary by lender and borrower profile. All applications are subject to underwriting.
FAQ
A P&L only mortgage allows self-employed borrowers to qualify using a profit and loss statement instead of tax returns or bank statements.
It must be prepared and signed by a licensed CPA or professional tax preparer.
Most lenders require a P&L covering 12 consecutive months.
Yes, many lenders offer P&L only mortgages for primary homes, second homes, and investment properties.
As long as your P&L reflects consistent annual performance and is CPA-prepared, fluctuating income may still qualify.
