P&L Loans — Your Business Speaks for Itself.
P&L Required
Tax Returns Required
Days to Close
BBB Rating
Your business qualifies. Your tax return doesn't.
What Is a P&L Loan?
A P&L loan — profit and loss loan — is a mortgage that qualifies your income using a CPA-prepared profit and loss statement rather than tax returns or W2s. Your accountant prepares a 12 or 24-month P&L reflecting your business’s actual revenue, operating expenses, and net income. The lender underwrites against that net income figure instead of the adjusted gross income on your tax return.
The distinction matters because the P&L and the tax return serve different purposes. A P&L reflects what your business actually earns and spends. A tax return reflects what your accountant does to legally minimise your tax liability — which typically includes depreciation, retirement contributions, health insurance deductions, vehicle expenses, and other strategies that reduce taxable income. Those strategies are good for your taxes but bad for conventional mortgage qualification. The P&L loan is built around the actual business picture.
For established business owners with structured financials and a CPA who already prepares formal statements, this can be the simplest of the three self-employed mortgage programs. You already have the document. Compare P&L loans with bank statement loans →
Who P&L Loans Are For:
- S-corp and C-corp owners
- LLC owners with formal bookkeeping
- Partnership owners
- Sole proprietors with CPA-prepared P&L
- Business owners with high depreciation
- Owners with large retirement contributions
- Anyone whose P&L net income exceeds tax return AGI
P&L Loan Requirements
Must be prepared and signed by a licensed CPA or accountant. Self-prepared statements not accepted.
680+ for best rates. P&L borrowers tend to be established business owners — many qualify well above the minimum.
10–20% depending on the program, loan amount, and credit profile.
Must be self-employed in the same business for at least 24 months. Business license or CPA letter verifying history required.
Calculated using the P&L net income — typically a stronger figure than your tax return AGI.
Single-family, condos, 2–4 unit properties across New York, New Jersey, Connecticut, Pennsylvania, and Florida.
Why the P&L Shows More Than Your Tax Return — Income Comparison:
All income the business generated — same starting point for both the P&L and the tax return
Payroll, rent, supplies, software — legitimate costs of running the business, subtracted on both documents
Net income after operating costs — before depreciation, retirement deductions, and other tax-reduction strategies that reduce your AGI
Depreciation, retirement contributions, vehicle deductions, health insurance, home office — legally reduces taxable income but also reduces your AGI for mortgage qualification
The figure conventional lenders use — after all tax strategies have been applied. Often significantly lower than P&L net income.
Why Business Owners Choose Powerhouse Solutions for P&L Loans
Your tax return exists to minimise your tax liability. It does that job well — and in doing so, it understates your actual business income for mortgage qualification purposes. We underwrite against your CPA-prepared P&L, which shows what the business actually earns. For most business owners with significant deductions, this is a materially better number.
S-corps, C-corps, LLCs, partnerships, and sole proprietors — the P&L loan program works across all business structures, and each has its own underwriting nuances. K-1 distributions, officer compensation, retained earnings, and pass-through income are all handled differently by different business types. Our loan officers understand how each structure presents income and know how to read the financials correctly.
The document required for a P&L loan — the CPA-prepared profit and loss statement — is one your accountant can typically produce quickly from existing records. You don't need to reconstruct your financial history. In most cases, if your CPA already prepares your business financials, the P&L is either already available or one short task away. We'll tell you exactly what format and time period the underwriting team requires.
Non-QM loans require a lender who controls the full process. We originate, underwrite, and fund every P&L loan ourselves. No broker layer, no third-party underwriter who doesn't know how to read a business P&L. Your loan officer works directly with our underwriting team — and we close in under 30 days.
P&L Loan vs Bank Statement Loan — Which One Is Right for You?
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Feature
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P&L Loan
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Bank Statement Loan
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|---|---|---|
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Income Documentation
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CPA-prepared profit & loss statement
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12–24 months of bank deposit history
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Tax Returns Required
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Not required
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Not required
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Income Calculation
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Net income per CPA-certified P&L
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Average monthly deposits minus expense factor
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Best For
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Business owners whose P&L net income exceeds deposit averages
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Business owners whose deposits consistently exceed P&L net income
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Documentation Burden
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Lower — one CPA-prepared document
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Higher — 12–24 months of statements, expense factor analysis
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Business Structure
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All structures — S-corp, C-corp, LLC, partnership, sole prop
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Works best for sole proprietors and single-entity businesses
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Required History
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2 years in same business
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2 years self-employed in same field
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Not sure which produces a stronger qualification? Your Powerhouse Solutions loan officer will run both scenarios and show you the numbers.
Your P&L Is the Document You Need.
How It Works
From Application to Closing
Tell us about your situation in under 2 minutes. No commitment, no credit pull.
Your dedicated loan officer reviews your details and issues a pre-approval letter, often the same day.
PHS manages the entire process from underwriting to title. You focus on finding your home.
As a direct lender, we control the timeline. No bank delays, no middlemen.
What Our P&L Borrowers Say
Business owners who qualified on their P&L — not their tax return.
P&L Loan FAQs
The questions business owners ask about qualifying on a profit and loss statement.
What is a P&L loan and how does it work?
Who qualifies for a P&L loan
P&L loans are designed for business owners who maintain formal financial records and work with a CPA. This includes S-corp and C-corp owners, LLC members, partnership owners, and sole proprietors with structured bookkeeping. You’ll need at least two years of self-employment history in the same business, a CPA-prepared P&L, and a 620+ credit score.
Does the P&L need to be prepared by a CPA?
What is the difference between a P&L loan and a bank statement loan?
Why does my P&L show higher income than my tax return?
Can I use a P&L loan for investment property or a second home
Yes. P&L loans can be used for primary residences, second homes, and investment properties. Requirements and down payment minimums vary by property type. Business owners expanding their real estate holdings can use the same income documentation across property purchases.