P&L-Only Loans
A P&L-only loan qualifies self-employed borrowers on a CPA-prepared profit-and-loss statement — no tax returns, no bank statement averaging. The lender uses the net profit figure as qualifying income. Most programs require 12–24 months of documented operating history.
By Sunrise Lending
About this program
What is a P&L-Only Loans?
How it works — step by step
Take the 60-second check-in
Five questions about your income structure and the transaction you're pursuing. The matcher identifies whether P&L-only or a bank statement hybrid is the stronger path for your file.
Work with your CPA on the P&L
The primary income document is a CPA-prepared profit-and-loss statement on letterhead, covering 12 or 24 months. It must distinguish gross revenue from net profit. Your CPA likely produces this regularly — you may already have it.
Gather the light bank-statement check
Most programs require 2–3 months of business bank statements as a sanity check that P&L figures align with actual deposits. This is lighter than a full bank-statement program review.
Licensed MLO reviews the file
A Sunrise loan officer confirms the P&L income calculation, identifies any CPA-attestation requirements, and confirms the program fit. Nothing locks until you choose to move forward.
Underwriting on net P&L income
The lender uses the CPA-documented net profit as qualifying income for DTI. The file proceeds through standard underwriting — appraisal, title, credit — from here. Tax returns are not used to calculate income.
What it usually looks like
- CPA-prepared profit & loss statement — 12 or 24 months, on CPA letterhead
- 12+ months in business (most programs accept shorter history than bank-statement programs)
- 2–3 months of business bank statements as deposit sanity check
- Credit score typically 660+ (better pricing at 720+)
- Down payment 10–25% depending on property type, LTV tier, and program
- No tax returns required for income calculation
- Reserves: 3–12 months PITIA depending on LTV and program
- CPA must be a licensed Certified Public Accountant (not a bookkeeper or enrolled agent)
How it compares
| Factor | P&L-Only Loan | Bank Statement Loan | Conventional |
|---|---|---|---|
| Primary income document | CPA-prepared P&L | 12–24 months bank statements | W-2 or tax returns |
| Tax returns required | No | No | Yes (2 years) |
| Business age requirement | 12+ months (some programs) | 24 months self-employed | 2 years self-employed |
| Income calc | CPA net profit | 50% of avg deposits (typical) | Schedule C net + add-backs |
| Best when | Complex deposits or younger biz | Deposits tell a clean story | File fits W-2 box |
| Rate vs. bank statement | Slightly higher typically | Baseline Non-QM rate | Often lower (agency pricing) |
Program terms, LTV limits, and documentation requirements vary by lender. As of June 2026. Not a commitment to lend.
Real scenarios
Tech staffing agency, Denver CO
A founder had launched a tech staffing firm 18 months prior. Her business checking had meaningful deposits, but they were scattered across three accounts — a bank statement average would have been messy. Her CPA prepared a 14-month P&L showing net operating profit of $28,500/month. She qualified on the P&L net, purchased a $680K primary residence with 20% down.
- Business age
- 18 months
- P&L net income
- $28,500/mo
- Purchase price
- $680K
- Path
- P&L-only program
Illustrative scenario. Not a commitment to lend.
Landscaping company, Phoenix AZ
A landscape contractor had grown from sole-prop to LLC over four years. His Schedule C showed $62K after equipment write-offs. His CPA produced a P&L for the most recent 24 months documenting $22,100/month in net operating income — the equipment costs that hit the tax return as depreciation were not running expenses. He purchased at $490K with 15% down.
- Schedule C net
- $62K/yr
- P&L qualifying income
- $22,100/mo
- Purchase price
- $490K
- Down payment
- 15%
Illustrative scenario. Not a commitment to lend.
Who this fits
Common questions
- Who is the P&L-only loan designed for?
- Business owners with shorter operating histories, recent revenue changes, or complex deposit patterns that make bank statement averaging messy. Also used when a CPA-prepared P&L tells a cleaner income story than 24 months of mixed deposits.
- What is the P&L document, exactly?
- A profit-and-loss statement prepared by a licensed CPA, covering 12 or 24 months, on CPA letterhead with identifying information. It must distinguish gross revenue from net profit so the lender can use net as qualifying income.
- Do I still need bank statements for a P&L loan?
- Usually yes — typically 2–3 months of business bank statements as a sanity check that P&L numbers align with actual deposits. This is much lighter than a full bank-statement program review.
- Can I qualify with less than 2 years in business?
- Yes. Most P&L programs accept 12+ months of operating history — shorter than the 24-month self-employment standard for conventional or bank-statement programs. This is one of the primary reasons P&L-only exists.
- How do P&L loan rates compare to bank statement rates?
- P&L-only programs typically price slightly higher than bank statement programs because the income document is less granular. The trade-off is flexibility — P&L works where 24 months of clean bank statements don't exist yet.
- What credit score do I need for a P&L loan?
- Most P&L programs require 660+, with materially better pricing at 720+. The matcher narrows to programs your score qualifies for; the licensed officer confirms before anything formal moves.
- Can I use a P&L loan for cash-out refinance?
- Yes, on owner-occupied and investment properties. Cash-out LTV limits are program-specific; expect slightly tighter limits compared to rate-and-term refinance. The officer confirms for your file.
- What if my P&L shows a loss year?
- One loss year doesn't automatically disqualify — lenders look at the trend and CPA context. Two consecutive loss years is harder. If deposits show real cash flow despite accounting losses, a bank statement program may produce a stronger qualifying income than P&L-only.
Not sure if P&L-Only Loans is the right fit?
Take the 60-second check-in. The matcher narrows you to the right path; a licensed mortgage officer reviews before anything formal moves.
Related resources
Sources
- 1.Consumer Financial Protection Bureau (CFPB). Ability-to-Repay and Qualified Mortgage Standards — Accessed June 2026
- 2.Internal Revenue Service (IRS). Schedule C (Form 1040): Profit or Loss from Business — Accessed June 2026
- 3.U.S. Small Business Administration (SBA). Small Business Facts: Self-Employed Workers — Accessed June 2026
P&L-only programs require a CPA-prepared profit & loss statement on CPA letterhead. Attestation requirements, look-back periods (12 or 24 months), and supplemental documentation vary by lender. Final approval, terms, and rates are determined by the lender after underwriting. Not a commitment to lend.
Sunrise Lending · Equal Housing Opportunity. Matching rules are written and reviewed by licensed mortgage professionals. All loan decisions are made by licensed mortgage professionals. Not a commitment to lend. Loan approval subject to underwriting guidelines. This is not financial advice.