EMPIRE WEST MORTGAGE LENDING
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Profit and Loss (P&L) Loan Program
The Profit and Loss (P&L) Loan Program is a specialized mortgage solution designed for self-employed borrowers whose income may not be fully reflected through traditional tax returns or standard documentation. Instead of requiring W-2s, pay stubs, or full tax filings, lenders evaluate a CPA-prepared or licensed tax preparer–prepared Profit and Loss statement to determine the borrower’s qualifying income.
This program is ideal for business owners who need a simplified approval process that accurately represents their real financial performance.
How the P&L Program Works
Borrowers provide:
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A 12-month or 24-month P&L statement, prepared by a CPA, enrolled agent (EA), or licensed tax professional
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Business bank statements may be requested to support revenue shown in the P&L
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Additional documentation may vary by lender
Lenders use the P&L statement to determine the borrower’s monthly qualifying income, offering a streamlined approach for individuals with complex or variable earnings.
Key Advantages of the P&L Loan Program
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No Tax Returns Required: Income is verified through a professionally prepared P&L statement.
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Ideal for Business Owners: Especially beneficial for borrowers who take significant deductions on taxes.
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Simplified Qualification: Less documentation compared to full-doc or traditional lending programs.
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Flexible Loan Options: Available for purchase, refinance, and cash-out refinance transactions.
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Competitive Terms: Designed to accommodate non-traditional income structures without sacrificing loan quality.
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Higher Loan Amount Potential: Since qualification is based on true business performance, many borrowers qualify for more than under conventional guidelines.
Who Is a Good Candidate for a P&L Loan?
This program is ideal for:
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Business owners with irregular income patterns
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Self-employed individuals who minimize taxable income
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Borrowers who prefer a streamlined, asset-based approach
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Clients needing higher purchasing power without extensive documentation
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Entrepreneurs with well-maintained business financials
Why Choose the P&L Loan Program?
The Profit and Loss Loan Program provides a realistic and efficient path to mortgage approval for self-employed borrowers. By recognizing the financial strength of a business through its P&L statement, this program eliminates barriers and allows qualified buyers to secure financing based on actual operational performance.