P&L Only Mortgage Loans in New Jersey
A P&L only loan qualifies you on a profit and loss statement prepared by your CPA or licensed tax preparer, instead of tax returns or a year of bank statements. The preparer signs it, the lender uses the net income figure on it, and that is your qualifying income.
What is a P&L only loan?
A P&L only loan qualifies you on a profit and loss statement prepared by your CPA or licensed tax preparer, instead of tax returns or a year of bank statements. The preparer signs it, the lender uses the net income figure on it, and that is your qualifying income.
It is the shortest path to approval for a business owner whose books are in good order.
Who is this built for?
Business owners with a real accountant and clean records, whose tax returns understate what the business actually produces.
It fits especially well when:
- You have a CPA who already prepares statements for you
- Your deposits are messy or split across many accounts, which makes a bank statement loan painful
- You want the lightest documentation load available
- Your business is newer than two full tax years but has a real track record
What documents do you need?
Usually a short list:
- A P&L covering 12 or 24 months, prepared and signed by a CPA, EA, or licensed tax preparer
- A business license or CPA letter confirming you have been in business, commonly two years or more
- Credit report
- Two months of personal bank statements for assets
Some programs ask for a small number of bank statements alongside the P&L to sanity check the figures. Others take the P&L alone. It depends on the lender and how strong the rest of the file is.
Who can prepare the P&L?
A CPA, an enrolled agent, or a licensed tax preparer. Not you.
This is the part that stops most files. A self-prepared spreadsheet is not acceptable on any program we have seen, no matter how accurate it is. If you do your own books, you will need a licensed preparer to review and sign off, and that is worth arranging before you start shopping.
P&L only vs bank statement loans
Both solve the same problem from different angles.
Bank statement loans count deposits and apply an expense factor. Good when deposits are clean and consistent. Painful when income arrives through many accounts or in irregular chunks.
P&L only uses your accountant's net income figure. Faster and cleaner when your books are solid. Not an option if you do not have a licensed preparer.
Which one prices better depends on the file. On most of ours, it is worth running both before picking.
What does it cost?
P&L only sits in the Non-QM category, so it prices above conventional and generally asks for more down payment. The lighter the documentation, the more the program charges for the uncertainty.
That trade is often still worth it, because the alternative is frequently not a cheaper loan, it is no loan.
Best fit if…
- ✓You own a business and have a CPA who prepares your statements
- ✓Your tax returns understate what the business really produces
- ✓Your deposits are split across many accounts
- ✓You want the lightest documentation load available
- ✓Your business is under two full tax years but has a track record
- ✓A bank statement loan turned into a paperwork nightmare
Spring Home Company, independent mortgage broker in Toms River, New Jersey. Licensed in New Jersey, Pennsylvania and Texas. NMLS #2741914. Sam Alpert, President and Mortgage Loan Originator, NMLS #1961555. 732-908-8040.
Informational only. Not a commitment to lend or a rate quote. Program terms and availability vary by lender and change without notice.