No tax-return reliance
No 1040s, no Schedule C, no 4506-T. Your CPA can keep optimizing the tax return without it costing you the house.
P&L statement loans for Texas business owners.
When 24 months of bank statements isn't the right fit, qualify on a CPA-prepared profit and loss statement instead. For established Texas small businesses with clean books.
- CPA-prepared P&L accepted
- 12–24 month P&L underwriting
- Clean books = clean approval
A self-employed mortgage that uses your CPA-prepared P&L as income.
A P&L (profit & loss) loan is a Non-QM mortgage where qualifying income is calculated from your CPA-prepared profit and loss statement instead of tax returns or full bank statement reviews. Best for self-employed borrowers whose tax returns understate income through legitimate deductions, but who keep tidy books with a CPA. Lenders use the net income line on the P&L (after expenses, before owner draws) as the qualifying figure — so the cleaner your bookkeeping, the cleaner the approval.
How a P&L loan goes from inquiry to keys.
- 01
Engage your CPA for a 12–24 month P&L
We tell your CPA exactly what the lender needs: a profit and loss statement covering 12 or 24 consecutive months, prepared on the CPA letterhead, with a date and signature. Most CPAs can turn this in a few business days from accounting software.
- 02
Verify business existence
Lenders need to see the business is real and operating: business license, articles of organization, EIN letter, or a Secretary of State filing showing two-plus years of operation. We collect these in parallel with the P&L.
- 03
Lender reviews the P&L for income
The Non-QM underwriter reads the P&L net income line, divides by the number of months, and uses that figure as monthly qualifying income. We run the same math up front so the pre-approval letter matches the final approval.
- 04
Standard credit + reserves underwriting
Beyond the income piece, the file underwrites like any other Non-QM: credit report, employment continuity, reserve verification, and property appraisal. Most P&L files want 6 months of reserves on a primary residence.
- 05
Clear-to-close and funding
Closing disclosure goes out at least three business days before close per TRID. You sign at title, funds wire, and you get keys. P&L loans close on the same TRID timeline as conventional — typically 30–35 days from contract.
Built for Texas business owners who run clean books.
Plenty of self-employed Texas families are profitable on paper but invisible to conventional underwriting because the tax return is optimized for a low tax bill. If you have an active CPA who keeps your books current — Xero, QuickBooks, real reconciliations — a P&L loan often qualifies cleaner than a bank statement loan, with less back-and-forth on deposit explanations. We work P&L files weekly and know which Non-QM lenders are sharpest on this product.
A P&L loan is the right tool when:
- You have been self-employed for at least two years
- Your strong cash flow does not show up cleanly on tax returns
- You have an active CPA relationship and current books
- Your bookkeeping is tidy in Xero, QuickBooks, or a similar platform
- You are buying a primary residence or second home in Texas
Why a P&L loan beats conventional for clean-books self-employed buyers.
CPA-attested income accepted
A CPA-prepared P&L is the income document. Underwriting reads the net income line directly — no expense factor estimation, no deposit-by-deposit reconstruction.
12–24 month P&L history
You choose the period that tells the strongest story. 24 months is standard; 12-month options exist with most Non-QM lenders, typically with a small pricing trade-off.
Up to 80% LTV
Strong-credit P&L files run to 80% LTV on a primary residence — meaning 20% down. Higher LTVs available case-by-case with strong reserves.
FICO 700+ typical
P&L pricing is sharpest at 720+ FICO, with most lenders requiring 700+ as a floor. Below 700 the options thin out — bank statement loans often fit better.
Owner-occupied or second home
P&L loans work for primary residence and second home occupancy. Investment-property variants exist but underwrite differently — DSCR is usually the better tool there.
12–24
Months of P&L documentation
P&L loan questions, answered.
What is a P&L loan?
A P&L (profit & loss) loan is a Non-QM mortgage that uses a CPA-prepared profit and loss statement as the qualifying income document — instead of personal tax returns or 12–24 months of bank statement deposits. The lender uses the net income figure on the P&L, divided by the number of months covered, as your monthly qualifying income.
Who needs to prepare the P&L?
A licensed CPA, EA (Enrolled Agent), or licensed tax preparer. Most lenders specifically require a CPA prepared on letterhead with a signature and date. The CPA is also typically asked to confirm two-plus years of self-employment history in a short cover letter.
Can I prepare the P&L myself?
Generally no. Lenders require third-party preparation by a licensed CPA, EA, or tax preparer to keep the income document independent. If you are a sole proprietor without a CPA today, we can typically refer you to one for the engagement — most CPAs turn a 12 or 24 month P&L in a few business days from your accounting software.
How is income calculated on a P&L loan?
Lenders take the net income line from the P&L (gross revenue minus business expenses, before owner draws) and divide by the number of months covered (12 or 24). That monthly figure becomes your qualifying income for DTI math. Some lenders add back specific non-cash expenses like depreciation; that varies by investor.
How is a P&L loan different from a Bank Statement loan?
Both are Non-QM alt-doc programs for self-employed borrowers, but they read income differently. Bank statement loans total deposits and apply an expense factor (typically 50%). P&L loans read net income directly from a CPA-prepared statement. P&L often works better for businesses with documented overhead (CPA already nets it out); bank statement often works better when the books are messy or there is no active CPA. We model both side by side when both fit.
What FICO score do I need?
Most P&L lenders want 700+ FICO, with the best pricing at 720+. A handful of programs go to 680 with strong compensating factors (large reserves, low LTV, sizable down payment). Below 680 the bank statement product is usually the better fit — we will tell you straight which one to chase.
Self-employed with clean books? Let's run your P&L.
P&L loan requirements at a glance.
- Self-employed for at least two years
- CPA-prepared P&L covering 12 or 24 consecutive months
- Business license, EIN letter, or articles of organization
- 700+ FICO typical (best pricing at 720+)
- 10–20% down on a primary residence
- Six-plus months of reserves (PITI) post-close
- Owner-occupied or second home in Texas
- Property must appraise at value
P&L vs Bank Statement vs Conventional at a glance.
| Income calc | FICO floor | Documentation | Best for | |
|---|---|---|---|---|
| P&L Loan | CPA-prepared P&L net income | 700 | P&L + business existence proof | Self-employed with active CPA and clean books |
| Bank Statement | Deposits with expense factor | 660 | 12–24 mo bank statements | Self-employed without CPA or with messier books |
| Conventional | Tax-return net income | 620 | Two years 1040s + Schedule C + W-2s | Self-employed whose returns actually support the income |
Ready to move on a P&L Statement Loan?
Get a soft-pull pre-approval in minutes. No credit hit, no surprises.
Other ways we close
Bank Statement Loans
Sibling Non-QM program — qualifies on 12–24 months of business or personal bank deposits instead of a CPA P&L.
Learn more1099 Income Loans
For independent contractors and commissioned sales — qualify on 1099 income directly, no tax-return scrub.
Learn moreAsset Depletion
For self-employed buyers with substantial liquid assets but lower current cash flow — assets convert to qualifying income.
Learn more