Qualify on Your Accountant's Numbers
A profit-and-loss loan uses a P&L statement for your business to establish your income. No tax returns, and none of the deposit-counting that a bank statement loan requires.
At a glance
- Minimum credit
- 640
- P&L period
- 12 months
- Timeline
- 30 to 45 days
- Route
- Self-prepared considered
Scope. Owner-occupied profit-and-loss loans are available in California only. On investment property, business-purpose lending is brokered nationwide. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.The self-prepared route
Who this fits
Your books are properly maintained and you have a CPA relationship
Your bank statements do not cleanly reflect the business — multiple accounts, heavy transfers, personal and business activity mixed
Your margins are strong and a standard expense factor would understate your real net income
You would rather hand over one document than assemble two years of statements
Who this does not fit
You have no properly maintained books at all. A P&L has to come from somewhere. If nothing is being tracked, a bank statement loan is the practical route.
Your net income is thin on paper. A P&L shows the bottom line directly. There is nowhere for it to hide.
You are a W-2 employee. Not applicable — see Full Documentation.
The self-prepared P&L program
Most lenders will not accept a profit-and-loss statement you prepared yourself. We place a program that will consider one.
That matters if you keep your own books properly and do not have a standing CPA relationship — a position a great many small business owners are in. It removes the two things borrowers most often get stuck on: the cost of having a statement prepared, and waiting on someone else's diary.
It is considered rather than automatic. The statement still has to be coherent, consistent with your business license and your accounts, and corroborated by the other documents in the file. Expect it to be looked at harder than a CPA-prepared statement, and expect the corroborating documents to matter more.
If you do have a CPA, use them — a prepared statement is the smoother path. If you do not, this route exists rather than sending you off to hire one.
How qualification works
The statement
The P&L covers a set period — 12 months — and shows revenue, expenses, and net income. It may be prepared by a CPA, an enrolled agent, or a licensed tax preparer
Your qualifying income is generally the net income, multiplied by your ownership share.
The corroboration
Most lenders also want something corroborating — a limited number of bank statements, a business license, or a letter from the preparer. A P&L on its own is rarely enough.
Everything after that is underwritten normally. Credit starts at 640.
What you will need
Your statement
- The P&L.
- A letter from whoever prepared it, confirming their credential and how long you have been in business — or, on the self-prepared route, the corroborating documents the program asks for instead.
- Business license.
- A few bank statements for corroboration on most programs.
The file
- Evidence of your ownership percentage.
- Credit report.
- Asset statements.
- Purchase contract or current loan documents.
- Appraisal and insurance.
No tax returns.
The honest trade-offs
What it reflects
Much lighter on paperwork than two years of bank statements, and it reflects what your business actually earns rather than applying a formula to your deposits.
What it depends on
The catch is dependency. If you are using a CPA, you need a CPA — which costs money, and your timeline is controlled by how fast they work. Start that conversation the day you decide to move forward, not the week before closing. Credit requirements are usually tighter than bank statement programs and the maximum loan-to-value is often lower. Fewer lenders offer it, and fewer still will look at a self-prepared statement — which is the reason placement matters here more than on a conventional file.
Process and timeline
Typically 30 to 45 days once the statement is in hand. Timelines are typical, never promised.
Before you spend anything on an appraisal
Scenario analysis
What the business earns, who keeps the books, and whether P&L or deposits reflect it better.
Lender analysis
Preparer requirements differ sharply between lenders, and the self-prepared route narrows the panel considerably. Placed from a panel of 20+.
Application to closing
- Statement and corroborating documents
- Application
- Appraisal
- Underwriting
- Closing
Statement, corroborating documents, application, appraisal, underwriting, closing.
Typical timeline30 to 45 days
Frequently Asked Questions
What is a P&L loan?
Your income is established from a profit-and-loss statement for your business rather than from tax returns or bank deposits.
Who can prepare the P&L?
a CPA, an enrolled agent, or a licensed tax preparer
Can I prepare it myself?
On the self-prepared program, it can be considered — which most lenders will not do. It is not automatic, and the statement will be examined more closely and corroborated harder than a professionally prepared one.
What period does it cover?
12 months.
How is my income calculated?
Net income from the statement, multiplied by your ownership percentage.
How is this different from a bank statement loan?
Bank statement counts deposits and applies a fixed formula for expenses. P&L uses the stated net income. If your books are clean and your margins are better than the standard formula assumes, P&L usually produces a better result. If your accounts are messy or commingled, bank statement is the easier route.
Will you want bank statements as well?
Usually a limited number, to corroborate the P&L. A profit-and-loss statement on its own is rarely accepted.
What credit score do I need?
640. It is typically a higher bar than bank statement programs.
How much down payment?
For borrowers who qualify under an owner-occupied program, financing up to 96.5% of value is available, subject to program eligibility, availability and approval. Most files price best at 80% of value or below. Owner-occupied lending is available in California only.
What if my accountant is slow?
Then that is your timeline, not ours. Ask them the day you decide to move forward, not the week before closing. This is the most common cause of delay in the product and it is entirely preventable.
What if I do not have a CPA?
Then either the self-prepared route or a bank statement loan is the practical answer. We will tell you which suits your file rather than sending you off to hire someone you do not need.
Does it matter that my net income looks modest on paper?
It matters a great deal. A P&L shows the bottom line directly — there is nowhere for a thin margin to hide. If the number is low, we should look at a different program before you pay for a statement.
Do you need my tax returns?
Generally no.
Is this available outside California?
On investment property, yes — business-purpose lending is brokered nationwide. Owner-occupied profit-and-loss loans are California only.
How long does it take?
Typically 30 to 45 days once the statement is in hand.
Do you fund these yourselves?
No. We are a brokered business and place the file with the lender whose program fits it.
What happens next
The umbrella over both, if you are still deciding.
If deposits work better
Bank Statement LoansIf the P&L route does not fit, deposits usually do. Same borrower, different evidence.
You are here
Profit & Loss Loans
Qualify on your accountant’s numbers.
If the property carries the file
DSCR LoansFor an investment property, where your business income is not used at all.
Request a Scenario Analysis
Tell us what the business nets, who keeps the books, and what you are buying. We will tell you whether P&L or deposits produce the better number before you pay anyone to prepare anything.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.
Nothing on this page or website constitutes an offer of credit, a rate quote, or a commitment to lend. All loans are arranged through third-party lenders and are subject to full application, credit approval, income/asset verification, property appraisal, and underwriting. Terms and availability are subject to change without notice. Loankey.io is a licensed real estate broker; loans are arranged, not made. Investor and business-purpose lending nationwide. Owner-occupied home loans in California.