Loan option
Profit and loss statement loans
A P&L loan uses a profit and loss statement prepared by a licensed professional as the basis for qualifying income, sometimes with supporting bank statements. Availability and requirements vary considerably between lenders.
How it works
How profit and loss statement loans work
The lender uses a profit and loss statement covering a defined period as the income basis. Lenders generally require it to be prepared by a licensed professional, such as a CPA or an enrolled agent, and some specify who is acceptable.
Many programs ask for supporting documentation alongside the statement — commonly a few months of bank statements — to corroborate the figures. Some are structured as P&L only.
As with other alternative documentation programs, credit, reserves, the down payment and the property are underwritten normally, and pricing differs from agency financing.
What to weigh up
- Who prepares the statement matters, and a statement you prepare yourself is generally not accepted.
- Consistency between the P&L, your bank activity and any filed returns reduces friction in underwriting.
- Availability of these programs changes with investor appetite.
Set by the lender, not by us
These vary between lenders and change over time. Nothing on this page is a quote, an approval, or a commitment to lend.
- Who may prepare the statement and what period it must cover
- Whether supporting bank statements are required, and how many months
- Minimum credit score, reserves and maximum loan-to-value
- Occupancy and property types accepted
Nothing on this page is a rate quote, an approval, or a commitment to lend. Figures and requirements change, and they depend on your file.
Terms used on this page
- Underwriting
- The lender's assessment of whether to make the loan: the borrower, the property, the documentation and the risk, measured against the program's guidelines and the lender's own overlays.No mortgage program skips underwriting. Programs described as "no income verification" change what is documented, not whether the file is reviewed.
- Bank statement loan
- A loan that derives qualifying income from deposits into business or personal accounts over a defined period, with an expense factor applied, instead of from tax returns.It is not a no-documentation loan. Credit, reserves, the property and the appraisal are underwritten as usual.
Questions about this program
- Can my bookkeeper prepare the statement?
- That depends on the lender's requirement, and many specify a CPA or similarly licensed preparer. Confirm the requirement before commissioning the work.
- Do I still need bank statements?
- Often yes, as corroboration, though the number of months varies and some programs do not require them. It is a lender-level requirement.
Official sources
Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.
- Explore loan options (opens in a new tab) — Consumer Financial Protection Bureau
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Talk it through before you start shopping
Bring your situation, not your paperwork. A first conversation is about which programs actually fit and what the numbers look like — no documents, no credit pull, no commitment.