Qualify with a profit and loss statement, not your tax returns.

It's a Non-QM mortgage that lets self-employed borrowers qualify using a profit and loss statement prepared by a licensed CPA, enrolled agent, or registered tax preparer — instead of tax returns or W-2s. The lender uses the income figure on that statement to determine how much you can borrow. It's designed for business owners whose tax returns understate their real cash flow because of legitimate write-offs.

Both are alternative-documentation, Non-QM options for the self-employed, but the math is different. A bank statement loan derives income by averaging deposits across 12 or 24 months of statements, which can mean a lot of paperwork. A P&L loan leans on a single income figure your accountant calculates, sometimes paired with just a few bank statements for validation — which many borrowers find simpler and faster.

Lenders generally require the P&L to be prepared and signed by a licensed third party — a CPA, an enrolled agent (EA), or a registered or licensed tax preparer. A self-prepared statement or one from your bookkeeper usually isn't enough on its own, because the lender is relying on a credentialed professional standing behind the numbers.

On a true P&L program, tax returns are not required. Some lenders ask for a few months of business bank statements alongside the P&L so they can confirm the deposits roughly match the stated income — but that's a light validation, not the full deposit analysis a bank statement loan requires. We'll tell you up front which documents your specific program needs.

Most P&L programs want to see at least two years of self-employment in the same business, which is also how long the profit and loss period typically runs. A few lenders will consider one year of self-employment with compensating factors such as a strong credit score, larger down payment, or significant reserves. We can check who's flexible on this if your timeline is shorter.

Guidelines vary by lender since these are Non-QM products, but credit scores from around 620 and down payments starting near 10 to 20 percent are common for owner-occupied homes, with stronger files earning better terms. Investment and second-home purchases usually call for a larger down payment and a higher score. Because terms differ so much between lenders, shopping the file matters — that's exactly what we do.

Generally yes. Non-QM loans price a bit above conventional or government loans to account for the alternative documentation, and the exact rate depends on your credit, down payment, occupancy, and the lender. For many business owners the trade-off is worth it, because qualifying on tax returns simply wouldn't reflect their true income. We'll show you the real numbers so you can weigh it honestly.

Yes. P&L documentation works for rate-and-term refinances and, on many programs, cash-out refinances as well — handy if you want to tap equity for your business or another property without producing tax returns. Cash-out terms and maximum loan-to-value vary by lender and occupancy, so we'll match your goal to the program that allows it.