P&L Only loans are the most flexible Non-QM income product on the market. Instead of bank statements, tax returns, or W-2s, the lender accepts a CPA-prepared profit & loss statement covering the last 12 or 24 months as your sole income document.
That's it. No deposit averaging, no schedule C, no transcripts. Your CPA prepares one document, the lender qualifies off the net income line, and the file moves.
How qualifying income is calculated
The lender takes the net income reported on the P&L (revenue minus expenses) and divides by 12 to arrive at monthly qualifying income. Your CPA must be a licensed third party — not you, not a bookkeeper. Most programs accept CPA, EA (Enrolled Agent), or licensed tax preparer.
Quick Example
A 12-month P&L showing $360K net income translates to $30K/mo qualifying income — enough to support a $1.2M+ loan at typical DTI.
What you need to qualify
- Self-employed for 2+ years in the same business.
- CPA-prepared P&L covering 12 or 24 consecutive months.
- Credit: 680+ minimum, 720+ for best pricing.
- LTV: Up to 80% on purchase, 75% on cash-out.
- Reserves: Typically 6–12 months PITIA.
Where P&L Only wins
- Your bank deposits don't reflect real income (transfers, comingled accounts, multiple entities).
- You operate through multiple LLCs or S-corps with complex K-1 flows.
- Your accountant can produce a clean P&L faster than 24 months of statements.
- You want the simplest possible income package and you have the credit and reserves to back it.
What it costs
Pricing on P&L Only programs typically runs 0.75% – 1.25% above conventional at the same credit profile. The premium reflects the lighter income documentation. We shop the full Non-QM market to find the sharpest rate.
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