Profit and Loss (P&L) loans are Non-Qualified Mortgage loans. Non-QM mortgage lending allow our borrowers to qualify using a 12-month P&L statement, making it ideal for self-employed individuals.
How to Qualify for a P&L Only Loan
To qualify, borrowers need a 12-month P&L statement prepared by a CPA, EA, CTEC, or tax attorney. Additional business documents may be requested to verify eligibility.
Verification of the tax preparer’s license and a signed tax attestation are also required to confirm the accuracy of the P&L statement.
A minimum credit score of 660 is required or all loan types under this program, ensuring wider access to financing for self-employed individuals.
Loan to Value Ratios
85% LTV for purchases, rate/term refinancing, or cash-out refinancing 80% LTV. For loans with less than 80% LTV, 100% of the down payment can be gifted, making it easier for borrowers to secure financing.
Self-Employed Income Doc Option
The Profit & Loss (P&L) Loan Program is designed for self-employed borrowers who don’t qualify under traditional income verification methods. Using a 12-month P&L statement, it caters to those seeking Non-QM mortgage solutions.
Jumbo and Super Jumbo Loan Amounts
This program offers flexible loan amounts up to $4 million, with a maximum LTV of 85% for purchases and rate/term refinances, and 80% LTV for cash-out refinances. Borrowers with less than 80% LTV can have 100% of their down payment gifted.