P&L Loan (Profit & Loss Statement)

How Does P&L Loan Work?

Instead of using tax returns the borrower can request their licensed tax preparer for a 1-to-2-year (P&L) Profit and Loss statement signed and dated on letterhead. This will allow the mortgage company to use the P&L vs collecting and reviewing your last two years of income tax returns. Many business owners have an advantage of using the tax code to write off expenses thus reducing the over all taxable income.

However, this can hurt the borrower’s ability to qualify for their dream home or investment. That is why the P&L loan program came out to help self-employed borrowers qualify using an accurate picture of the borrower’s true income.

Min 620 FICO | Max 90 LTV, loan to value, 720 score required

  • 30, 20 or 15-year fixed options available

  • 5/6 or 7/6 Arm’s available

  • Interest only loan products available

  • Investment properties up to 85% LTV

  • Primary, Second home or Investment

  • Purchase or cash out refinance

  • Max DTI 50%

  • 2-Months Business statements or as many as you need

  • CPA or Tax Preparer P&L Covering 12 or 24 Consecutive Months

  • Non-Warrantable condos allowed

  • May use > 2 months of statements to achieve a higher monthly average of income

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