Self-employed and struggling to qualify for a mortgage using tax returns? You’re not alone. Many business owners write off expenses that lower their reportable income, making it difficult to get approved under traditional guidelines. That’s where our P&L Statement Loan steps in.
With this Non-QM mortgage option, borrowers can use a 12-month or 24-month Profit & Loss Statement—instead of W-2s or tax returns—to qualify for home financing. It’s an ideal solution for entrepreneurs, freelancers, and small business owners who need a flexible path to homeownership or investment opportunities.
No W-2s
No pay stubs
No bank statements (unless required for reserves)
No tax returns
Profit & Loss Statement:
Covering 12 or 24 months (1-year or 2-year option).
Must be prepared and signed by a CPA or licensed tax preparer.
Should reflect accurate gross income, expenses, and net profit.
CPA Letter or Tax Preparer Attestation:
Confirms the validity and preparation of the P&L statement.
Business License or Proof of Business Ownership:
Sole proprietor: DBA registration.
LLC or Corporation: Articles of Incorporation, EIN, etc.
Valid Government-Issued ID:
Driver’s license or passport.
Minimum Credit Score:
Usually 620+, but requirements vary by lender.
Asset/Reserve Documentation (if required):
May need to show 3-6 months of reserves depending on loan size.
Property Appraisal:
Standard appraisal required for purchase or refinance.
Purpose: Designed for self-employed borrowers who prefer to qualify using their business’s Profit & Loss (P&L) statement.
Documentation Options:
1-year P&L
2-year P&L
No Tax Returns Required: Bypasses traditional income verification like W-2s or full tax returns.
Ideal For:
Sole proprietors
LLC or corporation owners
Entrepreneurs with complex or fluctuating income
Who Prepares the P&L: Must be prepared and signed by a licensed CPA or tax preparer.
Loan Purpose: Purchase, refinance, or cash-out refinance.
Minimum Credit Score: Typically starts at 620 (may vary by lender).
Loan Amounts: Often available from $100,000 to multi-million range.
Down Payment: As low as 10% depending on credit and reserve requirements.
Interest Rates: Competitive for Non-QM products.
Use of Funds: No restriction—can be used for primary, second home, or investment property.