Short answer: A profit and loss statement loan, or P&L loan, qualifies you on a 12- or 24-month profit and loss statement for your business, instead of tax returns. A CPA, enrolled agent or licensed tax preparer prepares or signs it. Some programs also ask for a few months of business bank statements to back it up. You can use it for a primary home, a second home or an investment property in Florida, Georgia, Michigan, North Carolina, Tennessee or Texas. The lender still verifies your income and your ability to repay.
How lenders figure your income
The underwriter takes the net income on your profit and loss statement and divides it by the number of months it covers. When a program asks for business bank statements, the deposits need to line up with the revenue on the P&L. The preparer's license is checked, and the statement usually has to run through a recent month-end.
Who a P&L loan fits
• Business owners who work with a CPA, enrolled agent or tax preparer
• Self-employed borrowers whose current year runs well ahead of last year's tax return
• Owners whose deposits mix business and personal money, which makes a bank statement loan harder
Documents for a P&L loan
✓ A 12- or 24-month profit and loss statement, prepared or signed by a CPA, enrolled agent or licensed tax preparer
✓ The preparer's license or credential, so the lender can verify it
✓ Two to three months of business bank statements, if the program asks for them
✓ Proof of two years in business
✓ Photo ID and permission to pull your credit
✓ Statements for the accounts holding your down payment and reserves
What still counts
• Credit: each program sets a minimum score.
• Matching records: your bank deposits should support the revenue on your P&L.
• Down payment and reserves: many programs ask for more than a conventional loan.
• Ability to repay: for a home you live in, the lender confirms the payment fits your verified income.
P&L loans in Florida and Georgia
The program rules match in both states. In Florida, condo approval and wind and flood insurance come up often and can change your housing payment. In Georgia, an attorney conducts your closing and you sign a security deed. FLO Mortgage arranges P&L loans through investor programs from our Flagler Beach office, by phone or online.
Compare every program on our non-QM loans page, including bank statement loans and 1099 loans.
P&L loans: common questions
Who can prepare the profit and loss statement?
Most programs accept a statement prepared or signed by a CPA, an enrolled agent or a licensed tax preparer. A statement you prepare yourself usually doesn't qualify on its own.
Do I need bank statements too?
Some programs ask for two to three months of business bank statements to support the P&L. Others accept the P&L alone.
Is a P&L loan or a bank statement loan better for me?
If your deposits clearly show your income, a bank statement loan often works well. If your accountant keeps clean books and your deposits are mixed, a P&L loan can be the simpler path.
How recent does the profit and loss statement need to be?
Most programs want it to run through a recent month-end. Your loan officer will confirm the date your program needs.
Can I buy my primary home with a P&L loan?
Yes. P&L loans can finance a primary home, a second home or an investment property.
Have a P&L from your accountant?
A licensed loan officer can review it and tell you which program fits. Prefer to talk? Call (386) 882-9980.
This page is general education, not a commitment to lend or an offer of specific terms. Profit and loss statement loans are non-QM loans offered through investor programs. They are not government-backed and are not qualified mortgages, and their terms and costs differ from conventional loans. Available on properties in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. All loans are subject to credit approval, income and asset verification, appraisal, underwriting guidelines, property eligibility and program availability. Not all applicants will qualify. Requirements vary by investor program and may change. FLO Mortgage is licensed as a mortgage lender in Florida (MLD2621) and Georgia (#1835856), Company NMLS #1835856; Broker Owner Joy McCoy Flores, NMLS #1096400. Equal Housing Opportunity. Licensing & Disclosures.