Profit & loss only. No tax returns.
A type of mortgage loan designed for self-employed borrowers who may not have traditional income documentation, such as W-2s or tax returns. Instead, lenders evaluate the borrower's profit and loss statement (prepared by a CPA or tax professional) to determine income.
Mortgage designed for self-employed borrowers.
Traditional loans require tax returns that may not reflect your actual cash flow due to deductions. A P&L loan focuses on business revenue instead, unlocking higher qualifying income.
Easier Qualification for Self-Employed
Traditional loans require tax returns, which may not reflect actual cash flow due to deductions. A P&L loan focuses on business revenue instead.
No Tax Returns Required
Instead of relying on tax documents, the lender looks at the P&L statement (sometimes combined with bank statements) to determine affordability.
Higher Loan Amounts
Since tax write-offs can lower reported income, a P&L loan allows borrowers to qualify for higher loan amounts based on actual business performance.
Faster Approval Process
With fewer documents required, these loans can often be processed more quickly than conventional loans.
What you'll need to qualify.
Documentation Requirements
CPA-prepared profit and loss statement. May be combined with bank statements to verify income and cash flow.
Ideal For
Self-employed borrowers, business owners, freelancers, and gig economy workers who write off business expenses on tax returns.
Key Advantage
Qualify based on actual business revenue rather than taxable income — potentially unlocking higher loan amounts.
Property Types
Primary residences, second homes, and 1–4 unit investment properties.
Credit Requirements
Minimum credit score requirements vary by program. Contact a loan specialist for personalized guidance.
Loan Amounts
Available for a wide range of loan amounts. P&L loans can help you qualify for more based on actual business performance.
Frequently asked questions.
A Profit and Loss (P&L) loan is a type of mortgage designed for self-employed borrowers who may not have traditional income documentation, such as W-2s or tax returns. Instead, lenders evaluate the borrower's profit and loss statement (prepared by a CPA or tax professional) to determine income.
No. P&L loans do not require tax returns. Instead of relying on tax documents, the lender looks at the P&L statement (sometimes combined with bank statements) to determine affordability.
Traditional loans require tax returns, which may not reflect actual cash flow due to deductions. A P&L loan focuses on business revenue instead, making it easier for self-employed borrowers to qualify.
Yes. Since tax write-offs can lower reported income on tax returns, a P&L loan allows you to qualify for higher loan amounts based on actual business performance.
With fewer documents required than conventional loans, P&L loans can often be processed more quickly — though closing time depends on your full situation.
The P&L statement should be prepared by a CPA or qualified tax professional to ensure accuracy and credibility for the lender.
Qualify on actual business performance.
No tax returns. Faster approvals. Higher qualifying income.