P&L Loans: How Your Accountant’s Statement Can Replace Tax Returns

If you're self-employed, you already know the problem: your accountant works hard to lower your taxable income, and then a traditional lender looks at that same lower number and says you don't earn enough to qualify. A Profit & Loss (P&L) loan solves that by letting a statement prepared by your accountant stand in for tax returns.

What is a P&L loan?

A P&L loan is a non-QM mortgage for self-employed borrowers. Instead of reviewing two years of personal and business tax returns, the lender calculates qualifying income from a Profit & Loss statement prepared and signed by a licensed CPA, Enrolled Agent (EA), or licensed tax preparer. Your credit, assets, and the property are still reviewed, but tax returns are not required.

How it works, step by step

• Your CPA, EA, or licensed tax preparer prepares a current Profit & Loss statement for your business — typically year-to-date plus the prior full year.
• The preparer signs the statement. A self-prepared P&L is not accepted.
• We review the P&L to determine your qualifying business income, along with your credit and assets.
• You get a soft-pull pre-approval, then move through underwriting to closing.

P&L loan vs. tax-return and bank statement loans

Program highlights

• No tax returns required
• Available for purchase and refinance
• Loan amounts up to $3 million
• Primary residence, second home, and investment properties
• Minimum 660 credit score (best pricing at 720+)
• Down payment typically 10%–20%
• Reserves of 3–6 months of mortgage payments

Who a P&L loan fits

• Business owners self-employed for at least 2 years in the same line of work
• Borrowers whose tax returns show low income because of legitimate write-offs
• Owners who work closely with a CPA, EA, or licensed tax preparer
• Self-employed buyers who haven't filed their most recent return yet
• Investors buying or refinancing a rental using business income

Who it may not fit

• Borrowers self-employed for less than 2 years
• Anyone without a licensed preparer willing to prepare and sign the P&L
• W-2 employees — a conventional or FHA loan is usually a better fit
• Business owners whose deposits tell a clearer story — a bank statement loan may work better

Tip: Talk to your accountant early. A clean, signed P&L that matches your business activity makes the review faster.

See full program details, eligibility, and FAQs. Profit & Loss Home Loan →

Compare with qualifying on deposits instead. Bank Statement Loans: 12 vs. 24 Months →

Frequently asked questions