Your CPA saved you $40,000 in tax. It just cost you $394,957.
Every write-off that lowered your taxable income also lowered the income a lender can see. A P&L Only loan qualifies you on a CPA-prepared profit and loss statement instead of tax returns — and it carries a premium. We will show you that premium, in dollars, before you agree to it.
A P&L Only loan qualifies you on a profit-and-loss statement prepared by a licensed CPA or tax preparer, instead of tax returns or bank statements. It exists because the tax code rewards self-employed people for showing low net income — and mortgage underwriting punishes them for exactly the same thing. The catch is the rate. A P&L Only loan typically prices around 8.35% against roughly 6.75% conventional, which on a $1,000,000 loan is about $394,957 in extra lifetime interest. That is the real cost of not having usable tax returns — and it is why the first thing we do is check whether you actually need it.
What the P&L route actually costs you.
Every Non-QM product is priced against conventional. Here is the gap, converted into money, over the life of the loan.
The number after your write-offs. This is all a conventional lender can see.
What the business actually earns, before the write-offs your CPA is paid to find.
Used to test whether your tax-return income could carry the loan conventionally.
Asset Depletion only appears below if you actually have the assets. We will not rank a product you cannot get.
Extra interest, over the life of the loan, versus conventional.
The P&L route costs you $394,957 more than conventional. Before you take it, let us check whether you actually need it — a lot of people don't.
Same house. Same you. A very different price.
The teal slab is what a conventional borrower pays in interest. Everything above it is the premium you pay for having a CPA who did their job well.
We are the ones selling you the P&L loan. We are also the ones telling you to check conventional first.
Illustrative only. Non-QM pricing varies enormously by credit score, loan-to-value, loan size, occupancy, property type and the lender's appetite on the day — the rates shown are representative, not quotes. Many Non-QM products also carry prepayment penalties, which conventional loans generally do not; read the note before you sign. Not a commitment to lend. Equal Housing Opportunity.
Four ways to prove income. One of them is cheapest.
You are self-employed, so you probably have more than one option — and they are not priced the same. We rank all four, including the one that earns us the least. If conventional works, take conventional.
Every route below is one we can actually place. The cheapest one is almost never the one with the biggest commission.
Your tax return shows $95,000 and this loan needs about $239,841 of documentable income to go conventional. It does not reach. So the question is no longer whether you pay a premium — it is which premium is smallest.
On your numbers that is Bank Statement at roughly 8.00% — costing $306,599 more than conventional across the loan.
Then refinance out of it the moment you have two years of tax returns that work. Check the prepayment penalty first.
From here to the keys — five steps.
No mystery, no call centre, no "we'll get back to you." Every step is exactly what happens inside it.
Four questions. No credit pull, no sign-up, no obligation.
~60 secondsWhat happensOne application goes to dozens of wholesale lenders. They compete for you.
Same dayWhat happensUnderwritten against real documents — not a soft letter any lender prints.
~24 hoursWhat happensListing agents call Adriana. She picks up. That is worth more than a bid.
Your timelineWhat happensConditions cleared, docs signed, funded. And she tells you the day you can refinance out of the premium.
To the dateWhat happensThree self-employed borrowers. One didn't need us.
Real numbers, and what we actually told them.
A different broker had him signing a P&L loan. His tax returns worked fine — nobody had actually added them up.
Legitimate write-offs. Every one of them defensible. All of them invisible to a conventional underwriter.
It saved about $9,000 in tax that year. It also removed roughly $300,000 of borrowing power.
ADReal Estate & Mortgage Broker · GRI
Milpitas, California · Serving all 58 counties
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A licensed broker who answers her own phone.
"A broker who will tell you no is the only kind whose yes means anything."
Everything people actually ask.
What is a P&L Only loan?
A mortgage that qualifies you on a profit-and-loss statement prepared and signed by a licensed CPA, EA or tax preparer — rather than on tax returns or bank statements. It is designed for self-employed borrowers whose legitimate write-offs have driven their taxable income far below what the business actually earns.
How much more does a P&L Only loan cost?
Typically 1.25 to 2 percentage points above conventional. On a $1,000,000 loan, 6.75% against 8.35% is roughly $1,097 more every month and about $394,957 more in interest across a 30-year term. That is the number most lenders will not put in front of you, and it is the first number we show you.
Should I use a P&L loan if my tax returns might work?
No. Check the tax returns first, properly — which means having someone actually calculate qualifying income rather than glancing at the bottom line. Add-backs for depreciation, depletion, amortisation, and business use of home can lift usable income substantially. We have moved people off Non-QM and onto conventional more than once, and it costs us money every time.
Who prepares the P&L?
A licensed CPA, Enrolled Agent, or licensed tax preparer — not you. It must be signed, and most lenders want it to cover 12 or 24 months and to reconcile broadly with your business bank activity. If your numbers and your deposits tell different stories, expect questions.
Do I still need tax returns for anything?
Usually not for income qualification, which is the entire point. Lenders will still verify your business exists and is active — typically a CPA letter, a business licence, and a look at your business bank account. Some will still want a signed 4506-C on file even when they do not pull the transcripts.
How long must I have been self-employed?
Most P&L programmes want 24 months. Some will accept 12 months with compensating factors — strong credit, real reserves, a lower loan-to-value. Under 12 months is genuinely difficult, and if that is you, waiting is often the cheaper answer than borrowing.
Is a P&L loan the same as a bank statement loan?
No. A bank statement loan derives income from deposits into your business or personal accounts over 12–24 months. A P&L loan uses your CPA's stated net income. They price differently and they suit different businesses — a high-revenue, high-expense business often does better on a P&L, while a business with clean, consistent deposits often does better on bank statements. We price both.
Can I refinance out of a P&L loan later?
Yes, and you should plan to. Once you have two years of tax returns showing income that supports the loan conventionally, refinance and drop the premium. Check the prepayment penalty first — many Non-QM loans carry one for the first three to five years, and it can eat the saving if you move too early.
Stop estimating. Get the real number.
Four questions, no credit pull. You'll get your payment, your options, and an honest read on the best fit.