Qualify with Your Profit & Loss Statement — No Tax Returns Required
Self-employed and finding it hard to qualify for a mortgage using tax returns? A Profit & Loss (P&L) loan may be a flexible alternative.
These loans are designed for business owners, freelancers, and independent contractors whose income may not show clearly on traditional documentation due to write-offs or seasonal fluctuations. Instead of tax returns, your qualifying income is based on a CPA- or accountant-prepared P&L statement.
Benefits of a P&L Loan
P&L loans can provide a streamlined financing solution with less paperwork and more flexibility:
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No tax returns or W-2s required
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Qualify using a CPA-prepared profit and loss statement
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Ideal for self-employed borrowers across industries
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May reflect higher qualifying income than tax-based methods
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Can be used for purchases, refinancing, or cash-out scenarios
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Available for primary homes, second homes, and investment properties
General P&L Loan Requirements
While requirements vary by lender, here are common factors typically reviewed:
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A profit and loss statement prepared by a certified accountant or tax professional
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Minimum self-employment history (usually two years)
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Acceptable credit and financial profile
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Verifiable reserves or assets based on loan size and property type
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Eligible property types include single-family homes, condos, townhomes, and 2–4 unit properties
This loan can offer a practical solution for self-employed borrowers who want financing that better reflects their real income.
Who Might Benefit From a P&L Loan?
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Small business owners and entrepreneurs
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Freelancers, consultants, and gig workers
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Investors needing simplified documentation
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Borrowers with seasonal or fluctuating income
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Anyone whose tax filings don’t accurately show their earning capacity
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