What is a Profit and Loss (P&L) Loan?
A Profit and Loss (P&L) Loan is a mortgage option for self-employed borrowers who want to qualify using their business’s financial performance instead of tax returns. Income is documented through a Profit & Loss statement and a year-to-date balance sheet, offering a more flexible approach for entrepreneurs.
Who is eligible for a Profit and Loss (P&L) Loan?
- No tax returns required
- Borrowers with 3 tradelines reporting for over 24 months
- Borrowers with a minimum 640 FICO score
- Must have business license(s) for at least 2 years
- Self-employed borrowers providing a Profit & Loss statement plus a year-to-date balance sheet
What are the benefits of a Profit and Loss (P&L) Loan?
- No tax returns required
- Allows a 3.5% down payment
- Provides flexible documentation for business owners with write-offs
- Ideal for entrepreneurs who want a streamlined approval path
Other Information for a Profit and Loss (P&L) Loan?
- All loans are subject to credit approval and lender guidelines
