What is a Profit & Loss (P&L) Loan?

A P&L loan is a Non-QM mortgage that allows self-employed borrowers to verify income using a current Profit & Loss statement (typically prepared by a CPA) rather than providing tax returns or W-2s.

Who should use a P&L Loan?

This loan is ideal for business owners and entrepreneurs who have organized financial records but minimize their taxable income through legal deductions/write-offs, making it hard to qualify for traditional financing.

How does a P&L Loan compare to a Bank Statement Loan?

While Bank Statement loans analyze your deposits (cash flow), P&L loans analyze your business's net profit as stated by your CPA. P&L loans are often better for businesses with high revenue but high expenses, or those who don't want to provide months of bank statements.

Do I need a CPA letter for a P&L Mortgage?

Yes. Most lenders require the Profit & Loss statement to be audited or prepared by a CPA or licensed tax professional to verify that the numbers accurately reflect the business's health.

Profit & Loss (P&L) Loans

Profit & Loss (P&L) Loans for Self-Employed Borrowers

Flexible mortgage solutions for business owners and entrepreneurs

If you’re self-employed or run your own business, qualifying for a traditional mortgage can be challenging—especially when your tax returns don’t tell the full story. That’s where Profit & Loss (P&L) loans come in.

These loans are designed to help entrepreneurs, freelancers, and small business owners secure home financing using their business’s P&L statements instead of traditional income documentation like W-2s or tax returns.

What Is a P&L Loan?

A P&L loan is a type of non-QM (non-qualified mortgage) specifically tailored for self-employed borrowers. Rather than focusing on your personal income, lenders assess your business’s Profit & Loss statement to determine your ability to repay the loan.

That means your mortgage application can reflect your actual earnings—before deductions—not just what's reported on your taxes.

P&L loans are a great fit for:

Small business owners and entrepreneurs
Self-employed individuals with tax write-offs that reduce taxable income
Freelancers, consultants, and gig workers with irregular income
Borrowers who don’t receive traditional pay stubs or W-2s

How Does a P&L Loan Work?

Instead of requesting your full tax return or pay stubs, lenders will evaluate your profit and loss statement, typically for the past 12–24 months. This document outlines your business income and expenses, giving lenders a clear picture of your financial health.

P&L loans offer:

Flexible income verification

Recognition of real business performance

Tailored solutions for non-traditional income earners

Simplified documentation process

Why Choose a P&L Loan?

You can qualify based on real business performance—not just reported taxable income
Ideal for borrowers who maximize tax deductions
Streamlined approval process for those with organized financial records
A smart alternative to bank statement or conventional loans

You work hard to run your business—your mortgage should work just as hard for you

Let’s talk about how a P&L loan can help you achieve your homeownership goals on your terms.