A common question amongst self-employed borrowers is: Can I Qualify for a Mortgage with My Profit and Loss Statement? If you’re a self-employed business owner, freelancer, or entrepreneur, you’ve probably already discovered that getting a mortgage isn’t always as simple as it is for traditional W-2 employees. The truth is, even highly successful business owners can run into roadblocks when trying to qualify for a loan the “traditional” way, especially if you write off a lot of expenses or keep your tax footprint small.
If you’re a successful business owner, but don’t have W-2 income or tax returns to show your success, applying for a mortgage can be daunting. We work every day with clients who are successfully self-employed, but don’t qualify for a conventional mortgage because their income is not proven in the typical way. If you don’t fit the mold, don’t worry. We are experts in helping people just like you to reach their goals in real estate, with solutions like a Profit and Loss Statement Mortgage.
What is a Profit and Loss Statement Mortgage?
A Profit and Loss (P&L) Statement mortgage is a type of home loan that allows you to qualify based on your business’s profit and loss statement, instead of using W-2s, tax returns, or bank statements. You can use either one or two years of P&L documentation to demonstrate your income.
This could be a game-changer for you if you:
-
Keep your taxable income low for strategic reasons
-
Have seasonal or fluctuating income
-
Are newly self-employed but have strong business performance
-
Earn significant cash income that is not reflected in your bank deposits
Bank statement mortgages are another popular option for self-employed borrowers, but for some business owners a P&L is going to be a stronger way to prove income. We can work with either one.
Profit and Loss Statement Loan Details at a Glance
While terms will vary based on the market, this is what you should know about a P&L Statement Loan with us:
-
Loan amounts from $300,000 to $6,000,000
-
Up to 85% financing available (you only need 15% down)
-
No W-2s or tax returns required
-
Use a 1-year or 2-year P&L statement prepared by a CPA
-
Perfect for cash-heavy businesses, freelancers, and entrepreneurs
Is a P&L Statement Mortgage Right for Me?
We know that every borrower is unique, and the financing we offer is just as specialized as our clients. The P&L Loan program is built specifically for:
-
Business owners and self-employed borrowers who don’t receive a regular paycheck
-
Entrepreneurs with fluctuating income or reinvested profits
-
Freelancers and gig workers who have strong earnings but minimal paper trails
-
Cash-based businesses such as salons, mechanics, independent retailers, or tradespeople
Even if your tax returns don’t fully reflect your income due to write-offs, we know that a professionally prepared P&L can highlight the real performance of your business, and that’s what we’ll use to qualify you.
What Do I Need to Apply for a Profit and Loss Statement Mortgage?
To apply for a P&L-based mortgage, you’ll need:
-
A profit and loss statement for the most recent 1 or 2 years, prepared by a licensed CPA
-
A business license (if applicable)
-
Basic documentation about your business and personal assets
-
Credit and down payment details
It is a far more streamlined process than collecting years of tax returns or organizing months of bank statements, and is probably easier than you think.
By leveraging your business income the smart way, you can open the door to real estate ownership, even if your tax returns say otherwise. If you’re self-employed and have been told you don’t qualify for a mortgage, you owe it to yourself to explore the P&L option. Want to learn more about applying for a mortgage as a business owner? We’re here to help, so contact us any time to apply or ask questions.
