A Profit and Loss (P&L) only mortgage lets you qualify for a home loan using a CPA-prepared income statement instead of tax returns or bank statements. No Schedule C. No 1040. Just your books.
If you have an accountant who maintains your business records, you may be sitting on the documentation you need to get approved right now. Lenders offering P&L only loans accept a professionally prepared Profit and Loss statement as the sole evidence of your income — making this one of the cleanest and simplest non-QM options for California self-employed borrowers.
Call (800) 239-1103 to find out if a P&L only loan is right for you.
What Is a P&L Only Loan?
A P&L only loan (also called a Profit and Loss mortgage or CPA letter loan) is a type of non-QM mortgage where the lender qualifies your income based entirely on a Profit and Loss statement prepared and signed by a licensed CPA or tax professional. No personal or business tax returns are required. No two-year history of filed returns. No Schedule C averaging.
The lender uses the net income figure on your P&L as your qualifying income, applies standard debt-to-income ratio calculations, and approves you based on that number.
How P&L Only Loans Work
The process is straightforward:
- Your CPA or tax professional prepares a 12 or 24-month Profit and Loss statement for your business.
- The P&L must be signed and dated by the CPA with their license number.
- The lender reviews the P&L for consistency with your industry and business type.
- The income shown on the P&L is used to calculate your debt-to-income ratio.
- Approval is based on that income — no tax returns reviewed.
Who Qualifies for a P&L Only Loan?
- Self-employed borrowers who have been in business at least 1-2 years
- Business owners who work with a CPA or bookkeeper
- Borrowers with clean, consistent business records
- Those who prefer not to share bank statements
- Borrowers whose tax return income is significantly lower than their actual P&L income
P&L Only Loan Requirements
- CPA-prepared P&L: Must be prepared and signed by a licensed CPA or enrolled agent
- Time period: Most lenders want 12 or 24 months of P&L history
- Credit score: Minimum 620 FICO (700+ for best rates)
- Down payment: Typically 10-15% on a primary residence
- Debt-to-income ratio: Usually 50% maximum
- Loan amounts: Up to $3 million with some lenders
P&L Loan vs. Bank Statement Loan
| Feature | P&L Only Loan | Bank Statement Loan |
|---|---|---|
| Documentation | CPA-prepared P&L | 12-24 months bank statements |
| Tax returns needed? | No | No |
| CPA required? | Yes | No |
| Min down payment | 10-15% | 10% |
| Qualifying income | P&L net income | Average monthly deposits (adjusted) |
| Best for | Borrowers with clean books | High deposit, high write-off borrowers |
Frequently Asked Questions
Does my CPA need to be a licensed CPA specifically?
Most lenders require the P&L to be prepared and signed by a CPA (Certified Public Accountant) or enrolled agent. Some will accept a licensed tax professional with verifiable credentials. A bookkeeper typically does not qualify.
What if my P&L shows a loss in one year?
Lenders using a 24-month P&L will average both years. A loss year can significantly reduce your qualifying income or disqualify you for this program. In that case, a bank statement loan or asset depletion approach may work better.
Can I use a P&L only loan for a jumbo loan in California?
Yes. Many non-QM lenders offer P&L only loans up to $3 million and beyond in high-cost markets like the Bay Area, Marin County, and Los Angeles.
Call (800) 239-1103 or apply online to get started with a P&L only loan today.
Related reading: Complete self-employed mortgage guide | Bank statement loans California | 1099 loan California
DiVita Home Finance, Inc. | NMLS #323700 | Equal Housing Lender | Licensed in California
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
