P&L-Only Loans
Qualify on a CPA-prepared profit-and-loss statement — for established business owners with clean books.
Built for established business owners whose accountant already prepares financial statements and who want the simplest income document.
You run an established business, your accountant keeps clean books, and you'd rather hand the underwriter one clear document than a shoebox of bank statements. But your tax return, after every legitimate deduction, shows a taxable income that doesn't match how the business actually performs.
A P&L-only loan lets your qualifying income come from a profit-and-loss statement prepared by your CPA or licensed tax preparer, covering the most recent 12 months. No tax returns and no 4506-C transcript. For owners with a real accountant and a profitable operation, it is often the least paperwork-intensive of all the self-employed programs.
July 2026 Update
July 2026 update: P&L-only qualification remains available for U.S. citizens and permanent residents. Investors increasingly want the P&L corroborated — commonly by a couple of months of business bank statements that reasonably support the revenue on the statement — so the two tie out.
The preparer must be a third party (a CPA or licensed tax preparer), not the borrower, and should be identifiable and licensed. Program availability and guidelines are subject to change without notice.
Program at a glance
The real guideline parameters for this program. Guidelines subject to change without notice.
How qualifying works
How P&L income is used
Your CPA or licensed tax preparer produces a profit-and-loss statement covering the trailing 12 months, showing revenue, expenses, and net profit. The underwriter uses the net profit (adjusted for your ownership percentage) as the qualifying income. Because the expenses are already itemized on the statement, there is usually no additional expense factor layered on top the way there is with raw bank deposits.
This is why clean books matter: the number your accountant certifies is close to the number you qualify on. The trade-off for that simplicity is a slightly more conservative loan-to-value at the top end — up to 70% at the $3M tier — reflecting the reliance on a single prepared document.
Why the preparer has to be independent
The statement must be prepared by a third-party CPA or licensed tax preparer, not by the borrower. That independence is what gives the document credibility with the investor. Expect to provide your preparer’s name, license number, and contact information, and be prepared for the lender to verify the relationship and sometimes request supporting bank statements to confirm the revenue is real.
What you bring to the table
A 12-month P&L from your CPA or tax preparer, evidence the business exists and has operated (typically two years), and standard asset verification for down payment and reserves. Credit is pulled and an ability-to-repay determination is made. If your books are already maintained by an accountant, this is frequently the fastest file to assemble.
P&L-Only Loans vs. a conventional loan
A P&L-only loan trades a slightly lower maximum loan-to-value at the high end for the simplest income document. Here is how it stacks up.
| Feature | P&L-Only Loans | Conventional loan |
|---|---|---|
| Income proof | 12-month CPA-prepared P&L | Two years of tax returns + 4506-C |
| Paperwork volume | One prepared statement | Full returns, schedules, and transcript |
| Minimum FICO | 660+ | Typically 620+ |
| Loan amounts | Up to 90% to $1M · 70% to $3M | Conforming / high-balance limits |
P&L-Only Loans — frequently asked questions
What is a P&L-only loan?
A mortgage where your qualifying income comes from a 12-month profit-and-loss statement prepared by your CPA or licensed tax preparer, instead of tax returns. No 4506-C transcript is required.
Can I prepare the P&L myself?
No. The statement must be prepared by an independent third-party CPA or licensed tax preparer. That independence is what makes it credible to the investor.
What credit score do I need?
The program starts at a 660 FICO. Higher scores can improve pricing and your loan-to-value tier.
How much can I borrow?
Up to 90% loan-to-value to $1M, and up to 70% to $3M. The larger tier is more conservative because it relies on a single prepared document.
Who is eligible?
U.S. citizens and permanent residents. Non-permanent residents should look at the bank statement program, which has broader borrower eligibility.
Will the lender check the P&L against anything?
Often yes. Investors commonly ask for a couple of months of business bank statements so the revenue on the P&L reasonably reconciles with actual deposits.
Is the qualifying income the net profit on the statement?
Generally the net profit adjusted for your ownership percentage. Because expenses are already itemized, an additional expense factor is usually not layered on.
How long do I need to have been in business?
Typically about two years of operating history, though guidelines vary by investor. We match your file to the guideline that fits your history.
Can I use a P&L loan for a refinance?
Yes, including cash-out, subject to the applicable loan-to-value limits.
Talk to the Cook Brothers about your file
We shop your scenario across 25+ non-QM investors to find the guideline that fits how you actually earn. Start with the two-minute qualifier or reach out directly.
Non-QM loan programs. Alternative income documentation required. All loans subject to underwriting approval, income/asset verification, and ability-to-repay determination. Not all applicants will qualify. Program availability and guidelines subject to change without notice.