Loan Options
Qualify with a CPA-prepared profit and loss statement.
P&L only loans let self-employed borrowers qualify using a professionally prepared profit and loss statement instead of tax returns or bank statement deposits. That structure fits businesses whose true performance isn't well reflected by either of those documents alone.
Quick answer
What is a profit and loss only loan?
A P&L only loan qualifies a self-employed borrower using a profit and loss statement prepared by a CPA, enrolled agent or other licensed tax preparer, rather than personal tax returns or bank statements. Underwriting reviews the reported revenue, expenses and net income, alongside business licensing verification, credit and reserves, and specific requirements vary by lender.
Written and reviewed by Abdel Khawatmi, Area Manager at Got Mortgages (NMLS #1712023) ·
Why borrowers use a P&L program
A CPA-prepared P&L can capture a business's real performance in ways tax returns or raw deposits sometimes can't.
Professionally prepared
A licensed CPA, EA or tax preparer documents the business's revenue and expenses, giving underwriting a credible third-party source.
No tax return reliance
Many programs are designed so heavy write-offs or a recent entity change don't have to sink an approval.
An alternative to deposits
For businesses with commingled or irregular deposits, a P&L can present a cleaner income picture than bank statements.
Who can prepare the P&L
Programs generally require the statement to come from a licensed CPA, enrolled agent (EA), or another qualified, licensed tax preparer who has an established relationship with the business. A borrower typically cannot prepare their own P&L for qualifying purposes.
The preparer usually signs the statement and may need to provide license information or a short letter confirming their role, so it's worth confirming your CPA is comfortable with this process before applying.
How qualifying income is derived
Underwriting reviews the P&L's reported revenue, expenses and resulting net income over the period covered, then applies its own review and any adjustments before determining a usable qualifying income figure. The exact period covered and calculation approach vary by lender and program.
When a P&L program beats bank statements or tax returns
Tax returns can understate income because of legitimate write-offs, or may not yet reflect a business that recently changed structure or grew quickly. Bank statements can be muddied by commingled accounts, pass-through transactions, or irregular deposit patterns.
A P&L prepared by a professional who understands the business can offer a more accurate current snapshot in these situations, which is why lenders sometimes treat it as a distinct alternative documentation path rather than a substitute for the others.
Documentation and business licensing verification
Beyond the P&L itself, lenders typically confirm the business is active and properly licensed for its industry and location, using tools like business license lookups, secretary of state records, or other public filings.
- Signed P&L from a licensed CPA, EA or tax preparer
- Proof of business ownership and entity documents
- Business license or registration verification
- Credit history and score
- Down payment or equity, and reserve requirements
Common issues that come up
Underwriters may follow up if a P&L doesn't reasonably reconcile with available bank activity, if the preparer's license or independence can't be verified, if business licensing is missing or lapsed, or if reported net income looks inconsistent with the type of business. Addressing these early with your CPA helps keep the file moving.
Situations where P&L loans often come up
- Businesses with significant legitimate tax write-offs
- Recently restructured or newly formed entities with a track record
- Businesses with commingled or irregular bank deposits
- Self-employed borrowers between tax filing years
- Multiple businesses needing combined P&L documentation
- Purchases and refinances, including cash-out
Keep exploring
- Bank Statement LoansQualify using business or personal deposit history instead of tax returns.
- Self-Employed BorrowersDocumentation paths when tax returns don't tell the whole story.
- 1099 Income LoansPrograms built around 1099 contractor income.
- Non-QM LoansSee the full range of alternative documentation programs.
- All Loan OptionsBrowse every program we structure.
- Build My Mortgage PlanStart mapping out financing for your business income.
Questions people actually ask
- A P&L only loan is a non-QM program that qualifies self-employed borrowers using a profit and loss statement covering their business, rather than personal tax returns or bank statement deposits. The stated net income on the P&L is generally used as the basis for qualifying income, subject to lender review.
Talk to your CPA, then talk to us.
Send us your business type and how your CPA currently tracks your numbers, and we'll walk through whether a P&L program fits.
P&L only program availability, preparer requirements, documentation periods and underwriting guidelines vary by lender. This page is educational and not a commitment to lend.
Educational information only. Not a commitment to lend, an offer of credit, or a guarantee of terms, approval, savings, or timing. All scenarios are illustrative and anonymized. Equal Housing Opportunity.