Most-asked: qualify on a CPA/EA/CTEC P&L · no tax returns · 660+ credit · 20–30% down · income = net ÷ 12 or 24 · qualify even with a tax-return loss. Details below.
The basics & the P&L
What is a P&L loan?
A non-QM mortgage qualifying self-employed borrowers on net income from a CPA-prepared 12 or 24-month P&L — no tax returns.
Who can prepare the P&L?
An independent CPA, EA, or CTEC preparer, on letterhead w/ license & signature. Self-prepared not accepted.
Do I need tax returns?
No — the CPA-prepared P&L replaces them.
12-month or 24-month P&L?
Both accepted; 24-mo smooths trends, 12-mo is simpler. Income = net ÷ months.
Is it a real, regulated loan?
Yes — a regulated non-QM product with standard credit, DTI, appraisal & reserve steps.
Credit, down payment & income
What credit score do I need?
660+ — stronger scores earn better LTV & rate. Requirements →
How much down payment?
20–30% (up to ~90% LTV); jumbo P&L may need more.
Can I qualify with a tax-return loss?
Often yes — lenders use the P&L's net income, not the return.
How is my income calculated?
Net income ÷ 12 or 24 = monthly qualifying income — no automatic expense haircut.
What reserves are required?
Typically 3–6 months of PITI.
Rates & alternatives
What are P&L loan rates?
~1–1.5% above conventional (non-QM). Rates →
P&L vs bank statement?
P&L gives a cleaner figure & can price better via CPA credibility; bank statement analyzes deposits.
P&L vs conventional?
Conventional cheaper w/ clean returns; P&L when write-offs understate you.
Can I refinance later?
Yes — into conventional as your tax picture allows.
Can I use it for investment property?
Yes — compare DSCR which qualifies on rent.
Your CPA, process & uses
Will my CPA have to guarantee the loan?
No — only verify they prepared/reviewed the P&L & that the business is active.
What if I don't have a CPA?
Hire a licensed CPA/EA/CTEC to prepare it — straightforward for a qualified pro.
Can I refinance or cash out?
Yes — purchase, rate-and-term, & cash-out all available.
Might I still need bank statements?
Sometimes 2 months, if your preparer didn't file your most recent business return.
Do you serve all of California?
Yes — all 58 counties, from Newport Beach & Marina del Rey.
Can I stack P&L with assets?
Sometimes — pairing with asset depletion can lift qualifying amounts.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties. Nothing here is tax advice.