Profit & Loss Statement Loans
Use your business’s performance, not tax returns, to qualify for a mortgage tailored to your self-employed lifestyle.
Get StartedWho are P&L Statement Loans built for?
Own a small business, work freelance, or earn non-traditional income
For those that have more current business success not reflected on last years 1099’s or tax returns
Can provide CPA- or tax-preparer-prepared P&L statements
How Profit & Loss Loans Help You
What Is a Profit & Loss Statement Loan?
If you’re self-employed, your income may not fit the mold of traditional mortgage requirements. P&L loans offer a smart alternative — allowing you to leverage your business’s financial performance instead of personal tax documents. This means more flexibility, less paperwork, and a financing solution that aligns with the way you earn.
A Profit & Loss (P&L) loan is designed for self-employed individuals and business owners who want to qualify for a mortgage using their business’s P&L statements. Instead of relying on W-2s or tax returns, lenders assess your ability to repay the loan based on your actual business performance — providing a more accurate reflection of your financial capacity.
Key Features of P&L Loans
Business financial statements serve as proof of income (1 or 2 year Profit and Loss statements)
No tax returns or bank statements required (depending on LTV)
Owner-occupied, second homes, and investment properties eligible
Faster processing with simplified documentation
Purchase, refinance, or cash-out refinance options
P&L Statement Loans in practice
Ralph, a landscaper, wants to take cash out on his home to re-invest in his business. He has considerable equity but is having trouble getting approved by his local credit union. The “issue” is he has significant expenses that his “creative” accountant uses. The CPA put together a P and L with what she would consider a more conservative approach and that was used as the source of income by the underwriter. Ralph was approved without the use of tax returns. The capital that came to him via the refinance has led to a huge expansion of his business.
Christina, a graphic designer, wants to go from renting to owning. Calculations by an expert say that the payment will be the same or lower to buy. The business has been fairly inconsistent but in the last few months (middle of the calendar year) there have been monster engagements where she has had a significant increase in revenue. Christina will employ a P and L mortgage program to buy her home. The key is that this unaudited P and L utilizes a rolling twelve months for its income calculation. The weight of the current success plays a huge role in getting approved.
Here’s How to Get Started
- Explore Your Options: See if a P&L-based mortgage fits your needs
- Connect with an Expert: Get matched with a licensed loan officer
- Get Preapproved: Gain clarity and confidence as you shop for your home
Just a Minute Could Unlock Your Options
Answer a few quick questions and explore if a P&L Loan might be the right fit for your self-employed path.
Get Started
