What Is a P&L Only Loan?
A P&L (Profit and Loss) only loan qualifies you based on a CPA, EA, or licensed tax preparer-prepared profit and loss statement. The lender uses the net income shown on the P&L as your qualifying income. No tax returns. No bank statements. No W-2s. Just the P&L letter and standard asset/credit documentation.
This is the fastest and simplest non-QM income documentation option for self-employed borrowers. The P&L typically needs to cover the most recent 12 or 24 months and must be prepared and signed by a licensed CPA or enrolled agent.
The trade-off: P&L only programs typically carry slightly higher rates than bank statement programs because the lender has less verification data. But the simplicity and speed can be worth the premium.
Who P&L Loans Are For
- Self-employed borrowers who want minimal documentation
- Business owners with complex financials that are hard to document via bank statements
- Borrowers who need speed — P&L is the fastest non-QM doc type
- Primary, second home, or investment property purchases and refinances
Key Features
CPA/EA-prepared P&L covering 12-24 months. Credit scores from 660-700 minimum. Down payments from 15-25%. Loan amounts up to $2.5M. 30-year fixed and ARM options. Self-employment typically required for 2+ years.