Profit and Loss (P&L) Loan Program
A type of mortgage loan designed for self-employed borrowers who may not have traditional income documentation, such as W-2s or tax returns. Instead, lenders evaluate the borrower’s profit and loss statement (usually prepared by a CPA or tax professional) to determine their income.
Benefits to Clients
Easier Qualification for Self-Employed Borrowers
Traditional loans require tax returns, which may not reflect the borrower’s actual cash flow due to deductions. A P&L loan focuses on business revenue instead.
No Tax Returns Required
Instead of relying on tax documents, the lender looks at the P&L statement (sometimes combined with bank statements) to determine affordability..
Higher Loan Amounts
Since tax write-offs can lower reported income, a P&L loan allows borrowers to qualify for higher loan amounts based on actual business performance..
Faster Approval Process
With fewer documents required, these loans can often be processed more quickly than conventional loans.
Think you can qualify for this loan?
Contact us today to find out!