A P&L (profit and loss) loan qualifies a self-employed borrower using a 12 or 24-month profit and loss statement prepared and signed by a licensed CPA, Enrolled Agent, or CTEC-registered California tax preparer, with no tax returns. The lender divides the P&L's net income by the number of months to get monthly income, with no automatic expense factor. Typical 2026 terms: 660 or higher credit, 20 to 30% down (up to about 90% LTV for strong files), 3 to 6 months of reserves, about 2 years in business.
Questions on this page
- What does a lender-ready P&L look like?
- How do I get a P&L from my CPA for a mortgage?
- Is my CPA liable if they sign my P&L?
- Can an S-corp owner use a P&L loan?
- P&L loan vs. bank statement loan: which qualifies for more?
- Can I get a P&L loan if my business is new?
- Will the lender also want my bank statements?
- How much house can I afford with a P&L loan?
- Can I use a P&L loan for a jumbo loan in California?
- Can I do a cash-out refinance with a P&L loan?
- Is a P&L-only loan legal for a primary residence?
- What if my tax return shows a loss but my P&L shows profit?
What does a lender-ready P&L look like?
It covers a full 12 or 24 months ending recently, shows gross revenue, expense categories, and net income, and is printed on the preparer's letterhead with their name, license or CTEC number, signature, date, and contact information. It should match what your bank deposits roughly support. A QuickBooks export or a spreadsheet you made yourself is not accepted.
How do I get a P&L from my CPA for a mortgage?
Ask your CPA, Enrolled Agent, or CTEC preparer for a 12 or 24-month profit and loss statement for mortgage qualification, signed on their letterhead, plus a short letter confirming your business ownership and how long they have known it. Most preparers can produce it within a few days if your books are current. Tell your broker who your preparer is first, since the preparer's credentials are verified.
Is my CPA liable if they sign my P&L?
The preparer is attesting that they prepared the statement from your records, not guaranteeing your loan. They are not responsible for your payments. Many preparers include a compilation disclaimer, and lenders accept that. What lenders will not accept is a P&L the preparer did not actually prepare.
Can an S-corp owner use a P&L loan?
Yes. S-corp, LLC, and sole proprietor owners can all qualify. Lenders typically require you to own a meaningful share of the business, often 25% or more, and adjust income by your ownership percentage. A P&L often helps S-corp owners because their personal returns show a modest salary while the business earns much more.
P&L loan vs. bank statement loan: which qualifies for more?
A P&L loan often qualifies you for more when your real expense ratio is under 50%, because bank statement loans on business accounts usually apply a default 50% expense factor while a P&L uses actual net income. A bank statement loan may be better if you lack a licensed preparer or your deposits are much stronger than your books. Run both.
Can I get a P&L loan if my business is new?
Sometimes. Most programs want about 2 years in business. Some accept 12 months if you worked in the same industry before, have strong credit, and bring more down payment and reserves.
Will the lender also want my bank statements?
Sometimes. Many P&L programs request 2 to 3 months of business bank statements to confirm that deposits support the revenue on the P&L, especially if your preparer did not file your most recent tax return. Large mismatches between deposits and the P&L can lower your qualifying income or stop the loan.
How much house can I afford with a P&L loan?
Take your P&L net income divided by 12 (or 24) and multiply by about 45% to estimate your maximum total monthly debt payments. For example, $240,000 of annual net income equals $20,000 a month, which supports roughly $9,000 a month in total payments, including the new mortgage, taxes, insurance, HOA, and other debts.
Can I use a P&L loan for a jumbo loan in California?
Yes. P&L programs commonly lend from about $200,000 up to $5 million, which covers most California jumbo purchases. Larger loans usually need stronger credit, more down payment, and more reserves.
Can I do a cash-out refinance with a P&L loan?
Yes. P&L loans support purchase, rate-and-term refinance, and cash-out refinance, typically with a lower maximum loan-to-value on cash-out than on a purchase. The cash can be used for any purpose, including business expansion or debt payoff.
Is a P&L-only loan legal for a primary residence?
Yes. P&L loans are non-QM mortgages documented under the federal Ability-to-Repay rule, so they can be used for primary homes, second homes, and investment properties. They are arranged through licensed brokers like Save Financial (NMLS #377740, DRE #01875766).
What if my tax return shows a loss but my P&L shows profit?
That is common and is why P&L loans exist. Depreciation, vehicle, home office, and other deductions can push taxable income to zero or below even when the business is profitable in cash terms. The lender qualifies you on the preparer's P&L, not your return. The P&L still has to be supportable by your deposits.
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Related: P&L loan requirements · P&L loan FAQ · Bank statement loan · 1099 mortgage
Terms shown are typical for 2026 and illustrative only, not an offer or commitment to lend. Programs, rates and guidelines vary by lender and change without notice. Save Financial, Inc. is a California-licensed mortgage broker, NMLS #377740, DRE #01875766.