P&L Only Mortgages: One Statement Instead of a Paper Mountain
A CPA-prepared profit and loss statement can be the only income document in your mortgage file. Here is when that is the right approach.
The P&L only program is the shortest document list in Non-QM lending. Instead of two years of returns or two dozen bank statements, you supply one profit and loss statement covering 12 or 24 months, prepared and signed by a licensed professional.
Who can prepare it
A CPA, an enrolled agent, or a licensed tax preparer. The preparer must have a verifiable license and typically cannot be related to you or employed by your business. They confirm they prepared the statement from your books, and their signature carries the weight the tax return would otherwise carry.
How income is calculated
Net income from the statement, multiplied by your ownership percentage, divided by the number of months covered. There is no expense factor to argue about, because the actual expenses are already on the page.
That cuts both ways. If your books show aggressive expenses, the P&L will show it. Borrowers whose accounting is tidy and whose margins are genuinely strong get the most out of this program.
Lender overlays to expect
Most lenders want two to three months of bank statements alongside the P&L to confirm the revenue line is plausible. Some require the preparer to complete a short verification form. A handful accept the statement entirely on its own, usually with a slightly larger down payment.
When to choose it
Pick P&L only when your business banking is spread across multiple accounts or processors, when partners share revenue, or when you simply need to close quickly and cannot spend two weeks assembling statements. Pick a bank statement program instead when your accounting is informal or when your books show low net income despite strong deposits.
Does this apply to your situation?
Twelve questions, no credit check, and no email required. See which programs are commonly used for situations like yours.
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