Qualify with a profit and loss statement.
A P&L loan lets self employed buyers qualify using a profit and loss statement for their business, prepared or reviewed by a CPA, enrolled agent or licensed tax preparer, instead of personal and business tax returns.
Who it's for
- Self employed buyers with an established business
- Owners whose business has grown since their last tax return was filed
- Buyers who work with a CPA or tax professional
How it works with me
- Your tax professional prepares a profit and loss statement covering the required period, usually 12 or 24 months.
- Some programs also ask for a few months of business bank statements to support the P&L.
- Qualifying income comes from the net profit shown on the statement.
What you'll need
- A profit and loss statement prepared or signed by a CPA, enrolled agent or licensed tax preparer
- Proof of self employment and business ownership
- Asset statements for down payment and reserves
Every situation is different. Send me your scenario and I will tell you honestly which programs fit, and compare them side by side in writing.
Programs, terms and eligibility vary and are subject to credit approval, underwriting guidelines and program availability. Not all applicants will qualify. This is not a commitment to lend. Laila Smith, NMLS #844202, HomeTown Lending, NMLS #2712965. Equal Housing Opportunity.
Questions buyers ask me
Can I write my own P&L?
Most programs require the profit and loss statement to be prepared or signed by a qualified tax professional. Ask me which version your program needs before you start.
Is a P&L loan better than a bank statement loan?
It depends on your business. Some owners qualify for more with one than the other. I run both so you can compare.
How quickly can I get preapproved?
Once your tax professional provides the P&L, I can usually review your scenario quickly and tell you where you stand.