If you'd rather skip both tax returns and bank statements, a P&L Only loan uses a CPA-prepared profit-and-loss statement as the sole income document. The cleanest paperwork pathway for established self-employed borrowers in California.
The lender uses a profit-and-loss statement, prepared and signed by a licensed CPA, EA, or other tax professional, as the sole income document for qualifying. The P&L typically covers the most recent 12-24 months of business operations. From the net income shown, the lender qualifies you for the mortgage amount that fits.
No tax returns are required. No bank statements are required. The CPA's professional sign-off on the P&L is what stands behind the income claim. This makes P&L Only the cleanest documentation pathway, often a single business-day to prepare your full income package.
Established self-employed borrowers with steady, predictable business income who'd rather not paper-trail every deposit.
S-corp and LLC owners whose tax returns show pass-through income that confuses conventional underwriters.
High-income professionals in private practice: doctors, dentists, attorneys, consultants, where the CPA already prepares quarterly or annual P&Ls and can issue one quickly.
Privacy-conscious borrowers who'd rather not share full tax returns or itemized bank statements with a lender.
The CPA-prepared P&L must include: gross revenue, itemized business expenses, net income, the period covered (typically 12-24 months), the borrower's ownership percentage of the business, and the CPA's professional sign-off (name, license number, contact information).
Many programs require the CPA to have a relationship with the borrower of at least 12-24 months, to show that the P&L is based on accurate ongoing records, not just a one-time engagement to qualify for the loan.
Full Doc: tax returns, pay stubs, W-2s. Best pricing but most paperwork.
Bank Statement: 12-24 months of deposits, plus CPA letter. Best for borrowers who deposit business income consistently.
P&L Only: single CPA-signed P&L. Best for borrowers with established CPA relationships and clean books. Fastest documentation timeline of the three.
Loan amounts $200K-$3M+. Up to 80% LTV on purchases, 75% on cash-out refi. Minimum credit usually 680, best pricing at 740+. Reserves of 6-12 months PITI. 30-year fixed or interest-only options.
A P&L Only loan qualifies a self-employed borrower based on a profit and loss statement prepared and signed by a licensed CPA, EA, or qualified tax preparer. No tax returns, no bank statements, no W-2s. The P&L is the only income document the lender needs. For business owners with clean books and a working relationship with a real CPA, this is often the fastest, cleanest path to qualifying.
The P&L is typically a year-to-date document covering the current year plus the trailing 12 months, broken down by gross revenue, expenses, and net business profit. Underwriting takes your share of the net profit (adjusted for ownership percentage and any obvious non-recurring items) and uses that as monthly qualifying income. Some programs require a CPA letter confirming the business has been profitable and operating in the same way for at least two years.
P&L Only is especially powerful for high-earning self-employed buyers whose tax returns lag a year or two behind reality, or whose write-offs would otherwise tank their qualifying income on a traditional file. We use this program regularly for real estate professionals, e-commerce business owners, consultants, medical and dental practice owners, and other California entrepreneurs who run real businesses and have the CPA relationship to back it up.
A licensed CPA, EA (Enrolled Agent), or in some cases a tax preparer in good standing with the relevant state board.
Most programs require 12-24 months of CPA relationship. Brand-new engagements solely to issue the P&L are typically not accepted.
Usually 680 minimum. The best pricing kicks in at 720-740.
Yes, though most investors prefer DSCR loans for rentals because no income documentation at all is required.
Usually similar. P&L Only sometimes prices slightly better when paired with strong credit and reserves because the lender has cleaner documentation.
21-30 days, faster than bank statement programs because document review is dramatically shorter.
Every self-employed and investor file is different. A 15-minute call with a real loan officer is the fastest way to find the right program.