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P&L Loan
A P&L Loan is designed for self-employed borrowers who may not have traditional income documentation but can qualify using a profit and loss (P&L) statement from their business. This mortgage option is ideal for business owners with fluctuating income who need a flexible alternative to tax returns or bank statements. By focusing on business cash flow and financial stability, a P&L Loan provides a streamlined path to home financing for entrepreneurs, freelancers, and independent contractors. If you’re self-employed and looking for a mortgage with simplified income verification, this program could be the perfect fit.
A Reliable Home Loan You Can Trust.
Alternative Income Documentation
Use a profit and loss statement to demonstrate your financial capacity.
Ideal for Self-Employed Borrowers
Tailored for business owners or those with non-traditional income.
Flexible Qualification Options
Offers a pathway to homeownership even without W-2s or extensive tax filings.
Customizable Loan Terms
Accommodates borrowers with varying income levels and business cash flow.
Loan Guidelines
If your details are near these guidelines, we encourage you to apply or reach out. Even if you don’t qualify for a 30-year fixed-rate mortgage, we may have other options available.
The Home
Purchase a new home or refinance your current mortgage.
Credit Profile
A credit score above 620 is typically required.
Debt-to-Income
Your debt-to-income ratio (DTI) should be under 50%.
Closing Costs
Along with your down payment, you’ll need sufficient funds to cover closing costs.
Explore Your Potential
Our calculators help you understand and visualize your options
Mortgage Calculator
Planning to buy a home? Calculate your estimated monthly payments, including taxes and insurance.
Refinance Calculator
Considering refinancing your mortgage? Find out how much you could save.
Frequently Asked Questions
Have questions? We’ve got answers! Explore our FAQ section to find helpful information about loans, refinancing, and more. If you don’t see what you’re looking for, feel free to contact us—we’re here to help!
Who are P&L Loans best for?
P&L Loans are best for self-employed individuals or business owners who may not have traditional income documentation but can demonstrate their income through a profit and loss (P&L) statement.
How do P&L Loans work?
P&L Loans rely on a profit and loss statement to verify income instead of W-2s, tax returns, or bank statements. Borrowers provide a detailed, accurate P&L report prepared by a licensed CPA or tax preparer to demonstrate their financial health and ability to repay the loan.
What are the pros and cons of a P&L Loan?
Pros:
- Tailored for business owners and self-employed individuals.
- Provides an alternative to traditional income verification methods.
- Can help borrowers with fluctuating or hard-to-document income qualify.
Cons:
- Lenders may require a CPA-prepared P&L statement, adding costs.
- Higher interest rates compared to conventional loans.
- Stricter review process to ensure accuracy of financial data.
Can I combine a P&L Loan with other forms of income verification?
Yes, many lenders allow borrowers to use additional documents, like bank statements or tax returns, alongside a P&L statement to strengthen their application.