P&L Only Mortgage Program
Profit & Loss Statement Only Mortgages
12 or 24 months of a CPA, EA, CTEC, or Tax Attorney-prepared Profit & Loss Statement is all we need. No tax returns. No bank statement analysis. Built for business owners whose tax filings are sophisticated but whose income story is clean on the books. Loans from $150K to $4M.
Why business owners pick the P&L Only path
- No personal or business tax returns required
- No bank statement deposit analysis — just the CPA-prepared P&L
- 12 or 24 months of P&L accepted
- CPA, EA, CTEC, or Tax Attorney can prepare and attest the P&L
- Up to 80% LTV on primary residence at the top FICO/loan tier
- Primary residence, second home, and investment occupancies eligible
Who the P&L Only path fits
The P&L Only path is for established business owners whose tax returns don’t tell a simple income story — but whose books absolutely do. A CPA-prepared P&L collapses the complexity into one clean number.
Multi-entity business owners
If you own multiple LLCs, S-corps, or partnerships, your tax return looks like a maze. A CPA-prepared P&L collapses everything into one clean income statement underwriters can actually use.
Real estate professionals
Real estate agents, brokers, and property managers with depreciation, mileage, and home-office deductions show low taxable income on Schedule C. A P&L Only path qualifies you on actual cash flow, not optimized-for-tax-purposes income.
Owners of complex entities
Operating businesses with cost-of-goods, accrual accounting, or significant non-cash deductions are hard to underwrite from tax returns. A 12 or 24-month CPA P&L produces a clean, defensible income figure.
Business owners simplifying — not hiding
You aren’t avoiding the tax return — your CPA must attest they completed or filed your most recent business tax return. The P&L Only path is for borrowers whose paperwork is in order, just complicated.
Credit, housing, and seasoning requirements
P&L Only sits in the Prime Time alt-doc column, which carries tighter housing and credit-event overlays than the Standard / Bank Statement / 1099 column.
- Maximum housing history: 1x30x12 (one 30-day late in the last 12 months)
- Minimum credit-event seasoning: 36 months since any bankruptcy, foreclosure, short sale, or deed-in-lieu
- Minimum credit score: 680 FICO
- Preparer requirement: CPA, EA, CTEC, or Tax Attorney who completed or filed the borrower’s most recent business tax return
P&L Only mortgage — FAQs
What is a P&L only mortgage?
A P&L Only mortgage qualifies you on a 12- or 24-month Profit & Loss Statement prepared by a licensed CPA, EA, CTEC, or Tax Attorney. Total Quality Lending uses the net income from the P&L as your qualifying income — no tax returns, no bank statement deposit math. Maximum LTV is 80% at the top FICO/loan tier.
Who can prepare the P&L statement?
The Profit & Loss Statement must be prepared by an independent third party: a CPA (Certified Public Accountant), EA (IRS Enrolled Agent), CTEC (California Tax Education Council registered preparer), or Tax Attorney. Bookkeepers, the borrower, or the borrower's employee cannot prepare the P&L.
Why does the CPA need to attest to the tax return?
The preparer must attest that they have completed or filed the borrower's most recent business tax return. This anchor prevents the P&L from being a fabricated document — the same professional who knows the business well enough to file taxes is the one preparing the P&L. It protects the borrower, the lender, and the integrity of the program.
What credit and housing-history requirements apply?
P&L Only sits in the Prime Time alt-doc column. Maximum housing history of 1x30x12, minimum 36 months of credit-event seasoning, and a 680 FICO minimum apply. These are tighter than the Standard / Bank Statement / 1099 column overlays.
How is qualifying income calculated from a P&L?
Underwriting uses the net income reported on the CPA-prepared P&L over the 12- or 24-month coverage period, divided by the number of months to produce a monthly qualifying income. Add-backs are limited to what the P&L itself reflects — there is no separate add-back analysis like on a tax return.
Is this the same as a bank statement loan?
No. The bank statement program uses 12 or 24 months of deposit data with a 50% fixed ratio, a CPA expense letter, or a CPA-prepared P&L on top of the deposits. The P&L Only path skips deposit analysis entirely — only the P&L itself drives the qualifying income. P&L Only is simpler if you have a clean CPA-prepared P&L; bank statements are better if deposit volume tells a more flattering story than net income.
Related alt-doc programs
Your CPA has the numbers — let’s qualify the loan
Most P&L Only borrowers move from quote to clear-to-close in three weeks.
Start my P&L Only quote