A Profit and Loss (P&L) Statement Loan Program is a non-qualified mortgage (non-QM) option for self-employed individuals, freelancers, or business owners who may not qualify for traditional loans due to irregular income or significant tax deductions. Unlike bank statement loans that rely on bank deposits, P&L loans use profit and loss statements—prepared by the borrower or a CPA—to verify income. These programs are ideal for those with strong business revenue but limited traditional documentation like tax returns or W-2s.
Income Verification: Lenders use a profit and loss statement (typically covering 12–24 months) to assess business income. Some require CPA-prepared or audited P&L statements, while others accept borrower-prepared ones.
Eligibility:
Documentation: