Loading
Profit & Loss Statement Loans
Business Income-Based Mortgage Solutions
Updated: February 2026
Reviewed: February 2026 by Sebastian Naranjo, NMLS #2313958
At SRK CAPITAL, we recognize that traditional mortgage qualifications don't work for everyone, especially self-employed professionals and business owners. Documenting income through tax returns can be challenging for these individuals. That's where Profit & Loss (P&L) Statement Loans can help. These types of loans offer a smart income verification that uses your business's financial performance to qualify for a mortgage.
This loan choice is great for individuals with irregular or hard-to-document income, making home ownership and refinancing more accessible.
Ready to Learn More?
Our team can help you understand if a P&L Statement Loan is right for your business situation.
What Are Profit & Loss Statement Loans?
A Profit & Loss (P&L) Statement Loan allows borrowers to qualify for a mortgage based on their business's financial statements. Instead of tax returns or W-2s, lenders evaluate a licensed CPA created profit and loss statement to calculate your income. This is helpful for self-employed individuals who take significant tax deductions, resulting in lower reported income.
Key Benefit: Your actual business performance matters more than your taxable income, giving you a better chance at mortgage approval.
Who Can Use Profit & Loss Statement Loans?
If you run your own business or have unpredictable income streams, traditional qualification requirements can be difficult. That is where P&L loans can help.
Self-Employed Individuals
Entrepreneurs, freelancers, and small business owners.
Gig Workers
Independent contractors or gig economy professionals.
Real Estate Investors
Individuals generating income from property investments.
Professionals with Fluctuating Income
Those with seasonal or irregular earnings.
How Do Profit & Loss Statement Loans Work?
1
CPA P&L Statement
Borrowers get a profit and loss statement prepared by their licensed accountant or CPA.
2
Verify Assets and Business Health
Lenders also ask for supporting documents. This can include business bank statements to confirm the financial stability of your business.
3
Loan Approval
Loan terms are based on the strength of your financial statements, credit score, and available assets.
4
Close Your Loan
Once approved, you'll sign the paperwork and be ready to close escrow on your new home.
Important: The entire process typically takes 2-3 weeks with proper documentation, making it faster than many traditional loan options.
Benefits of Profit & Loss Statement Loans
No Tax Returns Needed
Your eligibility is based on your business's financial performance, not tax filings.
Flexible Income Documentation
Lenders focus on your gross revenue and expenses rather than your taxable income.
Higher Loan Amounts
Borrowers with strong business performance may qualify for larger loans.
Fast Approvals
Streamlined documentation can speed up the approval process.
Eligibility Requirements
To qualify for a P&L Statement Loan, you'll typically need:
A Well-Prepared P&L Statement
The statement must be correct and verifiable. It will need to be drafted by a CPA.
Good Credit
There is no set mandatory score, but most lenders ask for at least a 680 FICO. Higher credit scores can secure better terms.
Reserves
Lenders can ask for a certain amount of reserves to show financial stability.
Established Business History
Your business should have a proven track record, typically 2+ years of operation.
Debt-to-Income Ratio (DTI)
While traditional DTI doesn't apply, lenders still assess your ability to repay.
Common Uses for P&L Statement Loans
Borrowers use P&L Statement Loans for:
Purchasing a Primary Residence
Buy your dream home, even with non-traditional income.
Refinancing
Lower your interest rate or access equity for other financial goals.
Investment Properties
Expand your real estate portfolio with flexible financing.
How to Get Started
1
Consult with SRK CAPITAL
Contact our team to discuss your financial goals. We will help you decide if a P&L Statement Loan is right for you.
2
Prepare Your Documents
Work with your accountant to put together a detailed and accurate profit and loss statement.
3
Complete Your Application
Collect all necessary loan documents, including P&L statements, bank statements, and proof of business history.
4
Loan Approval
Once your financials are reviewed and approved, get ready to close escrow.
5
Close and Celebrate
Finish the loan process and enjoy your new property or refinance benefits.
Commonly Asked Questions
Contact SRK CAPITAL Today
If you're ready to explore how a Profit & Loss Statement Loan can help, SRK CAPITAL can help. We can help you achieve your home ownership or investment property goals.
Contact SRK CAPITAL today to learn more about how Profit & Loss Statement Loans can work for you.
SRK CAPITAL – Home Lending Solutions for Every Entrepreneur
Financial Disclosure
The information provided on this page is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates and terms are subject to change and may vary based on your individual financial situation. Please consult with a licensed mortgage professional at SRK CAPITAL for personalized guidance.