P&L Statement Loans — Qualify on Business Profit

How P&L Loans Work

A P&L Statement Loan allows self-employed borrowers to qualify using a CPA-prepared Profit and Loss statement instead of tax returns. This is particularly useful for business owners whose tax returns show significantly less income than their business actually generates.

Lenders use the net income shown on the P&L — sometimes with add-backs for depreciation and other non-cash expenses — to calculate qualifying income. Most programs require the P&L to be prepared and signed by a licensed CPA or accountant.

P&L loans are available for 12-month or 24-month statement periods. A 12-month P&L is useful when income has recently increased significantly. A 24-month P&L provides a more stable income picture and may result in better terms.

These loans are available for primary residences, second homes, and investment properties. Our network includes lenders who specialize in P&L underwriting.