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Self-Employed?
We have more reasons to say YES.
WATCH A VIDEO ABOUT THIS PROGRAM
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Self-Employed?
We have more reasons to say YES.
WATCH A VIDEO ABOUT THIS PROGRAM
As a business owner, you work hard, and you deserve to buy your dream home, just like anyone else.
Unfortunately, most banks and credit unions are unable to see your type of income in the same way you do. They are required to use the taxable portion of the income on your tax returns.
If you're like most successful business owners, you're probably paying tax professionals good money to keep your tax burden as low as possible. This is a great strategy...until you try to apply for a traditional home loan.
...But it's no longer a problem, because now you've discovered our P&L Home Loan Program.
Using our P&L Home Loan Program, we use a Profit and Loss Statement (P&L) for the most recent 12-24 month period, prepared a licensed tax preparer. We utilize the net figure (i.e. - after expenses) as the income to qualify for your new loan.
Simple, right? That's the purpose of the loan.
This income calculation approach is even easier than one of our most popular programs, the Bank Statement Loan. Applicants who have difficulty qualifying for traditional loan programs and Bank Statement Programs, often find success with the P&L Home Loan Program.
Other than the income calculation approach, you'll find that our P&L Home Loan Program works like every other traditional mortgage you may have experienced.
In fact, it has some added flexibility that you won't find in traditional mortgages. There is no PMI, and best of all, there are no prepayment penalties.
Many of our clients use this program to buy their dream home and later decide to refinance it into a traditional loan once they (and their tax advisors) determine the optimal time to do so.
Essentially, the P&L Home Loan Program allows you to take control and buy a home on your terms.
We are proud to support American business owners. We believe in keeping things simple, which is why we provide educational resources and our decades of experience, so you can finance with confidence.
We are your trusted leader in P&L Home Loan financing.
Give us a call today to discuss your scenario and find out how we can make homeownership possible for you!
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🚀 WHO IS THE IDEAL CANDIDATE FOR A P&L HOME LOAN?
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DOCUMENT CHECKLIST
Are you a 1099 Employee or Independent Contractor? Did you know that there is a program designed for your type of income?
Check out our 1099 INCOME PROGRAM.
LEARN MORE
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A Profit and Loss (P&L) loan is a type of mortgage designed for self-employed borrowers who may not show consistent income on their tax returns. Instead of W-2s or tax filings, lenders evaluate your business’s P&L statements—usually prepared by a CPA—to verify income for mortgage qualification.
P&L mortgage loans are ideal for self-employed professionals, gig workers, 1099 earners, and small business owners who have been in business for at least 12–24 months. Lenders typically require a CPA-prepared profit and loss statement and solid credit history.
Lenders use the net income from your year-to-date or full-year P&L statement, often averaged over 12 or 24 months, to determine your qualifying income. Unlike traditional loans, no tax return documentation is required.
No, P&L mortgage loans do not require tax returns. This makes them a strong alternative for borrowers who write off significant expenses or whose tax documents don’t reflect their true earning power.
You’ll typically need:
Both serve self-employed borrowers, but bank statement loans use actual bank deposits to determine income, while P&L loans rely on a summarized profit and loss report. P&L loans are often faster to process and require fewer documents.
Absolutely. Many P&L loan programs can be used for purchasing or refinancing primary residences, second homes, or investment properties—especially under non-QM lending guidelines.
Loan amounts typically range from $100,000 to $3 million. Your exact limit will depend on your credit profile, property type, down payment, and the strength of your profit and loss statement.
Most lenders prefer or require a CPA-prepared P&L for credibility and underwriting accuracy. However, some programs accept self-prepared statements if supported by strong bank statements and other proof of income.
Yes, self-employed homeowners can use a P&L mortgage loan to refinance their home, even without traditional tax documents. As long as your profit and loss statement supports sufficient income, you can qualify for a rate-and-term refinance.
Absolutely. Many P&L loan programs allow for cash-out refinancing, enabling self-employed borrowers to tap into home equity for business growth, debt consolidation, or large expenses—without needing tax returns.
Most lenders require at least 20–25% equity in the property for a cash-out refinance using a P&L loan. The exact loan-to-value (LTV) requirement may vary based on your credit and property type.
Yes, P&L-based refinancing is available for investment properties. These loans are a popular option for real estate investors who may not qualify for conventional financing due to write-offs or complex income structures.
Minimum Down Payment
20% - for loan sizes ranging from $125,000 - $3MM
FICO of 660+
Reserves:
$1MM loan size - 6 months reserves
$2MM loan size - 9 months reserves
$3MM loan size - 12 months reserves
25% - for loan sizes ranging from $100,000 - $726,200
(minimum TransUnion score of 600+)
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20% - for loan sizes ranging from $726,201 - $825,000
(minimum TransUnion score of 640+)
20% - for loan sizes ranging from $825,000 - $1.25 Million
(minimum TransUnion score of 680+)
25% - for loan sizes ranging from $825,001 - $1.25 MM
(minimum TransUnion score of 680+)
PMI (Private Mortgage Insurance)
None
Minimum Middle credit score
575 (LTV and other terms may vary, see Loan Originator)
Min/ Max Loan Amount
$100,000 - $3MM
Loan Repayment Terms
30 Year Fixed Rate
15 Year Fixed Rate
Prepayment Penalties
None for Owner-Occupied Homes or Second Homes.
Investment properties Only - 6 months interest on 80% of the original principal balance
Recent Housing Events
Min 24 months - OR-1 day minimum (See Loan Originator for details)
Max Seller Contributions
6% for Owner-Occupied or Second Homes
6% for Investment Homes
Escrows
Escrows for Property Taxes and Home Insurance required
Occupancy
Primary Residence / Second/Vacation Home / Investment
Acceptable Property Types
Single Family, Townhome/ Villa/ Condominium/ Condotel or Non-Warrantable Condominium
UNACCEPTABLE Property Types
Manufactured Homes, Modular Homes, Mobile Homes, Raw Land, Condotels, Log Homes, Dome Homes, Tiny Homes, Commercial Mixed-Use
Other
Yes! We accept income from legal Cannabis-based businesses. 🌿
This is not a commitment to lend. Not all borrowers will qualify for the loan programs listed. All program terms and conditions are subject to change and may be discontinued without prior notice. Contact loan originator for program questions and scenarios.
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