NON-QM Loans | P&L loans
P&L Loans for Business Owners
Qualify using a 12 or 24 month profit and loss statement instead of tax returns.
It can be a smart way to consolidate debt, fund home improvements, invest in real estate, or access equity when refinancing your first mortgage makes sense.
100% secured. No impact to your credit scores.
Fast Pre-Approvals
Licensed in AL, GA, FL, TX, SC
Multiple Non-QM Options
Self employed borrowers
12 or 24 month P&L options
620 minimum credit score
Up to $4M loan amount
Primary, second home and investment
What is a P&L Loan?
P&L loans are a type of Non-QM mortgage that allow self-employed borrowers to qualify using a profit and loss statement from their business instead of relying only on personal or business tax returns.
With a P&L loan, the lender reviews the borrower’s business income, expenses, and overall cash flow to determine how much qualifying income can be used for the mortgage. This can be helpful for business owners whose tax returns do not fully reflect their true earning ability because of write-offs, deductions, or the way their income is structured.
This type of loan is often a good fit for self-employed borrowers, small business owners, freelancers, contractors, and real estate professionals who have strong business cash flow but may not qualify easily through traditional tax-return-mortgage guidelines. Depending on the borrower’s credit, down payment, reserves, property type, and overall financial profile, a P&L loan may allow for higher loan amounts and more flexible documentation than conventional mortgages or governement backed loans.
Focus on cash flow and real income
Uses a P&L statement instead of tax returns
Credit scores as low as 600 allowed
Down payment as low as 20%
Who is this loan good for?
Business owners
Sole proprietors, single member LLCs, partnerships
Freelancers & gig workers
Sole proprietors, single member LLCs, partnerships
Contractors and service providers
Sole proprietors, single member LLCs, partnerships
Real estate professionals
Sole proprietors, single member LLCs, partnerships
Borrowers with write offs
Sole proprietors, single member LLCs, partnerships
Not sure if the P&L loan or a Non-QM loan is right for you?
P&L Loan vs Bank Statement Loan vs 1099 Income Loan
How does the P&L loan stack up vs other popular Non-QM loans?
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Feature
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P&L Loan
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Bank Statement Loan
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1099 Loan
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|---|---|---|---|
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Best For
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Business owners with strong financial statements
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Self-employed with strong bank deposits
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Independent contractors with 1099 income forms
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Income Type Needed
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12 or 24 month CPA/Tax Prepared P&L
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12 or 24 months of bank statements
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Most recent tax year's 1099-income form
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Tax Returns Needed?
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Never
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Never
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Never
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Ideal for
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You have strong business financials but inconsistent bank deposits
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Your deposits are strong, great cash flow
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You earn income as a 1099 contractor
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Down payment needed
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20% down minimum
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10% down minimum
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10% down minimum
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Customer Win: The real estate agent who needed equity access
Profile: Real Estate Agent needed cash-out out her primary’s home equity to consolidate debt and lower her rate.
Challenge: Write offs on tax returns did not let her qualify for a convenetional loan, 1 year of 1099 income wasn’t enough for a 1099 loan and newly established bank account stopped her from a bank statement loan.
Solution: P&L Loan
How it played out: Ms. Cox, one of our preferred real estate agents in Atlanta, GA, a dear friend of ours and client for many years, had acquired a mortgage at 7.875% during the height of rates of 2023.
Rates had dropped earlier in 2026 and she was looking at potentially saving around $6,000/year on her mortgage payments. Additionally, she was interested in taking a little bit of cash out of her house to consolidate some debt acquired during the rehab of a property.
The problem was that as it is very common with real estate agents, her tax returns showed too many losses in order to qualify for a regular conventional mortgage. A 1099 income loan wasn’t a good fit either because the employer had reported it incorrectly and a bank statement loan couldn’t help her because she had switched bank accounts in the last few months.
The P&L Loan was the perfect solution for her. Her CPA provided us with a Profit and Loss statement of her business and her net income shown was enough to qualify her for a lower rate, payment and get her the cash she needed on hand to qualify.
P&L Loan Requirements
Interested in the program? These are some of the basic requirements you’ll need.
✅ Minimum 600 credit score.
✅ Minimum 20% down payment.
✅ 3 months of cash reserves.
✅ You must be self-employed.
✅ Your business must be in existence for at least 2 years.
✅ CPA letter verifying your ownership percentage and business existence.
✅ CPA letter verifying your business existence.
Typical Documents You May Need
P&L loans can be more flexible than traditional mortgages, but you’ll still need to document your business income clearly. Depending on the program, you may be asked for:
👉A 12- or 24-month P&L statement
👉 Recent business bank statements
👉 A CPA or tax preparer letter
👉 Proof your business has been active
👉 Business license if applicable
👉 Asset statements for reserves and closing funds
👉 Standard mortgage documents and ID
Pros & Cons of Non-QM Loans
Pros of P&L Loans 😁
Flexible income documentation
Instead of relying only on personal or business tax returns, some lenders may allow you to qualify using a 12- or 24-month profit and loss statement. This can be helpful if your tax returns show lower income because of business deductions or write-offs
Helpful for self-employed borrowers
This loan option is designed for business owners, freelancers, contractors, consultants, and other self-employed borrowers who may have strong cash flow but do not fit traditional mortgage guidelines
May reduce the need for tax returns
Depending on the program, full tax returns may not always be required. This can make the process easier for borrowers whose tax returns do not accurately reflect their current business income.
Can work for purchases, refinances, and cash-out refinances
Some P&L loan programs may be available for buying a home, refinancing an existing mortgage, or pulling cash out of a property, depending on the lender and borrower profile.
May allow larger loan amounts
For borrowers with strong credit, sufficient equity, and stable business income, P&L loans may allow higher loan amounts than some traditional mortgage options.
Built around real business cash flow
A P&L loan may give a more realistic view of how a self-employed borrower earns income, especially when business deductions reduce taxable income on paper.
Cons of P&L Loans 😒
Not every borrower will qualify
P&L loans still have credit, down payment, reserve, property, and income stability requirements. Even though the documentation may be more flexible, the lender still has to verify that the loan makes sense.
Rates may be higher than traditional loans
Because P&L loans are typically Non-QM mortgages, interest rates may be higher than conventional, FHA, VA, or other traditional loan programs. The exact rate depends on credit score, loan amount, down payment, property type, and overall risk profile
More money down may be required
P&L loans often require a larger down payment than traditional mortgage programs. Lower credit scores, higher loan amounts, investment properties, or cash-out refinances may also require more equity.
Reserves may be required
Some lenders may require several months of mortgage payments in reserves after closing. This means you may need additional funds available beyond the down payment and closing costs.
Guidelines vary by lender
Not all P&L loan programs are the same. One lender may require bank statements, a CPA or tax preparer letter, or a higher credit score, while another may have different requirements.
The P&L must be credible and supportable
The lender will still review the quality of the profit and loss statement, business activity, income consistency, and supporting documentation. If the numbers do not make sense, the income may be reduced or the loan may not be approved.
related resources
Bank Statement Loans
Non-QM Bank Statement Loan for self-employed borrowers and business owners.
bank statement HELOC
Home Equity Line of Credit using your bank statements for qualification.
DSCR Loan
Investor financing that does not require personal income to qualify.
Non-QM Loans
Suite of Non-QM loans for self-employed borrowers and investors offered by Andes Mortgage
