top of page
Key Highlights
The Benefits
Income Beyond Tax Returns
Qualify using your business profits.
Simplified Documentation
Reduce traditional income paperwork.
Reduce traditional income paperwork.
Designed for self-employed borrowers.
What's Required
Profit & Loss Statement
One or two years may be required.
Business Documentation
Additional financial records may be requested.
A Detailed Review
Income and business finances are evaluated.
The Ins & Outs
How it Works
A Profit & Loss (P&L) loan is designed for self-employed borrowers whose business income may not be accurately reflected on their tax returns. Eligible borrowers may qualify using a year-to-date or one- to two-year profit and loss statement, often prepared by a CPA, instead of traditional income documentation.
These programs are available for primary residences, second homes, and investment properties, including loan amounts above conventional lending limits.
Example Scenario
A business owner reinvests much of their revenue back into the company, reducing taxable income. A P&L loan may allow eligible profit and loss statements to better demonstrate the business's financial performance.
What is a P&L loan?
A P&L loan is a Non-QM mortgage that allows eligible self-employed borrowers to qualify using a profit and loss statement instead of traditional tax returns.
Who is a P&L loan designed for?
These programs are designed for self-employed business owners who have strong business income but may not qualify using traditional tax return documentation.
Are P&L loan interest rates higher?
P&L loan interest rates are often higher than conventional loans because they provide greater qualification flexibility. Your rate depends on your overall financial profile.
Can I refinance a P&L loan later?
Yes. Many borrowers refinance into a conventional loan once they meet traditional lending guidelines.
How much can I borrow?
Many P&L loan programs offer loan amounts above conventional lending limits. Your maximum loan amount depends on the lender and your financial profile.
bottom of page