> ## Documentation Index
> Fetch the complete documentation index at: https://cameron.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Who Qualifies for a P&L Loan

> Eligibility requirements for profit and loss statement mortgage programs

P\&L loans are available to self-employed borrowers who can provide a CPA-prepared profit and loss statement covering the required period. The core requirements are self-employment, an established business with documentable financials, and a CPA relationship.

## Who This Loan Is Designed For

P\&L loans work best for business owners whose financial picture is accurately captured by formal accounting:

* Business owners with a CPA who maintains monthly or quarterly financials
* Professionals with lower overhead than their industry's default expense factors imply
* Borrowers whose bank deposits include non-income items (pass-throughs, reimbursements, client retainers paid on behalf of third parties)
* Anyone whose P\&L net profit is higher than what bank statement calculations would produce

## Self-Employment Requirements

The same self-employment standards that apply to bank statement loans apply here:

* Typically two years of self-employment history (some lenders accept one year with compensating factors)
* Documented business existence: business license, formation documents, or CPA letter
* Ownership stake verified (usually 25%+ ownership triggers self-employment treatment)

## The CPA Requirement

Unlike bank statement or 1099 loans, a P\&L loan requires active CPA involvement. You'll need a licensed CPA who:

* Has prepared financials for your business for at least the period being documented
* Is willing to prepare and sign a P\&L statement meeting the lender's format requirements
* Can verify their CPA license and provide their PTIN (Preparer Tax Identification Number)

Self-prepared P\&Ls are not accepted for P\&L loan programs. Lenders require the third-party credibility that a licensed accountant provides.

## Business History and Stability

Lenders want to see a business that has operated consistently over the qualifying period. Signs of instability—a declining revenue trend, a P\&L that shows losses in the prior year, or a business less than 12 months old—raise underwriting concerns.

| Factor           | What Lenders Look For           |
| ---------------- | ------------------------------- |
| Revenue trend    | Stable or increasing            |
| Net profit       | Positive across the full period |
| Business age     | 2 years preferred               |
| CPA relationship | Ongoing, not newly established  |

## Credit and Financial Requirements

P\&L loan credit and reserve requirements are similar to other self-employed mortgage programs:

| Requirement  | Typical Range     |
| ------------ | ----------------- |
| Credit score | 620-700 minimum   |
| Down payment | 10-20% minimum    |
| DTI ratio    | Up to 50%         |
| Reserves     | 6-12 months PITIA |

## Who Does Not Qualify

* **Borrowers without a CPA** — Self-prepared financials are not acceptable
* **Newly established businesses** — Insufficient history to prepare a meaningful P\&L
* **Businesses with losses** — A P\&L showing a net loss disqualifies rather than qualifies
* **W-2 employees** — No self-employment income to document

## Bank Statements as Supplemental Verification

Many lenders who offer P\&L programs also require 2-3 months of bank statements to verify that deposits are consistent with the revenue shown on the P\&L. The statements aren't used to calculate income—that comes from the P\&L—but they confirm the financials are grounded in reality.