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.

P&L Only Loans

P&L Loans

Mortgage Qualification Using Profit & Loss Statement

Perfect for Self Employed Borrowers

P&L Loan Chart

P&L Only Loan vs Traditional Loan

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

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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.