Self-employed · Florida
P&L loans
The lightest paperwork in the self-employed range. Where a bank statement loan reads twelve months of deposits, a P&L loan reads one statement your accountant already produces.
What is a P&L mortgage loan?
A P&L loan qualifies a self-employed borrower on a profit-and-loss statement covering the most recent 12 or 24 months, prepared or reviewed by a CPA, enrolled agent or licensed tax preparer, in place of tax returns. Some lenders ask for two or three months of bank statements alongside it to confirm the deposits are consistent with the stated revenue.
What the statement has to show
Gross revenue, expenses and net profit for the period, signed by the preparer with their licence or PTIN. The lender uses the net figure. Because the document is easy to produce, lenders lean on the preparer's credentials and often on a short run of bank statements as a sanity check.
When it beats a bank statement loan
When your margins are high and the default 50 percent expense factor would understate you, a P&L showing real expenses can qualify you for more. It also suits businesses whose revenue does not flow neatly through one account.
Next step
Find out if this fits your file
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Straight answers
Frequently asked
Who can prepare the P&L for a mortgage?
A CPA, an IRS enrolled agent or a licensed tax preparer with a PTIN. The statement is signed by the preparer and the lender may contact them to confirm it. A self-prepared or bookkeeper-prepared P&L does not qualify.
Do P&L loans need bank statements as well?
Frequently, yes, but only two or three months — to check that deposits are consistent with the revenue on the statement — rather than the twelve or twenty-four months a bank statement loan needs. Some lenders waive them with a strong preparer letter.
Is a P&L loan a QM loan?
No. It is a non-qualified mortgage, so the rate is above agency financing and terms vary by lender. That is the price of qualifying without tax returns; if your returns support the loan, conventional financing is cheaper.
Often compared with
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