Option 1
P&L-only
A P&L statement without the supporting bank statements. This option lists a minimum credit mid-score of 720.
Min. credit mid-score720
Max. LTV listed80%
PROFIT AND LOSS LOAN PROGRAM
Profit and Loss (P&L) Loans for Self-Employed Borrowers in Florida
Qualify for a mortgage with a profit and loss statement prepared by a CPA, EA, or licensed tax preparer, instead of tax returns. 1st Florida Lending offers two P&L loan options for business owners, freelancers, and independent contractors:
- P&L with two months of bank statements: 640 minimum credit score, loans up to $5 million
- P&L only, no bank statements: 720 minimum credit score, loans up to $3 million
- Up to 80% LTV for purchases and refinances on primary homes, second homes, and investment properties
640Min. credit score, up to 75% LTV
80%Max. LTV, 680 min. credit score
$5MMax. loan, from $150K
Program Overview
What is a P&L loan, and who is it for?
A P&L loan is a mortgage option for self-employed borrowers who use business profit and loss statements to document income. The P&L statement is prepared by a licensed third party, such as a certified public accountant (CPA), an enrolled agent (EA), or a licensed tax preparer.
This option may suit established business owners, freelancers, and independent contractors who already work with an accountant and want an alternative way to document income for mortgage qualification.
Business ownersFreelancersIndependent contractors
Documentation
Choose your documentation option
You can choose between two documentation options:
Option 2
P&L with two months of bank statements
A P&L statement supported by two months of bank statements. This option lists a minimum credit mid-score of 640.
Min. credit mid-score640
Max. LTV listed80%
Both options list a maximum loan-to-value (LTV) ratio of 80%. However, the general program highlights require a minimum FICO score of 680 for 80% LTV, and a score of 640 is listed for loans up to 75% LTV. The minimum score and the maximum LTV are not an automatic combination, so the requirements for your documentation option should be confirmed together.
At a Glance
Program highlights
Minimum FICO score
640
For loans up to 75% LTV
Maximum LTV
80%
With a minimum FICO score of 680
Minimum loan amount
$150,000
Program minimum
Loan purposes
4 Options
Purchase, cash-out refinance, rate-and-term refinance, and delayed financing
Eligible properties
3 Options
Primary residences, second homes, and investment properties
The P&L-only option separately requires a minimum credit mid-score of 720.
Side by Side
Compare the documentation options
The table below shows the limits listed for each option. Conditions and unresolved limits are shown in the table rather than simplified.
| Feature | P&L with two months of bank statements | P&L-only |
|---|---|---|
| Income documentation | P&L statement supported by two months of bank statements | P&L statement only |
| Minimum credit mid-score | 640 | 720 |
| Maximum LTV | 80% | 80% |
| Credit and LTV conditions | Program highlights list 640 for up to 75% LTV and a minimum FICO score of 680 for up to 80% LTV. | 720 minimum mid-score for this option. |
| Minimum loan amount | $150,000 (program minimum) | $150,000 |
| Maximum loan amount | $5 million | Up to $3 million |
| Business bank statements | Two months, as part of this option | Not part of this option, but at least two months are required if your tax preparer did not file your most recent business tax return |
Documentation options compared
Income documentation
P&L with two months of bank statementsP&L statement supported by two months of bank statements
P&L-onlyP&L statement only
Minimum credit mid-score
P&L with two months of bank statements640
P&L-only720
Maximum LTV
P&L with two months of bank statements80%
P&L-only80%
Credit and LTV conditions
P&L with two months of bank statementsProgram highlights list 640 for up to 75% LTV and a minimum FICO score of 680 for up to 80% LTV.
P&L-only720 minimum mid-score for this option.
Minimum loan amount
P&L with two months of bank statements$150,000 (program minimum)
P&L-only$150,000
Maximum loan amount
P&L with two months of bank statements$5 million
P&L-onlyUp to $3 million
Business bank statements
P&L with two months of bank statementsTwo months, as part of this option
P&L-onlyNot part of this option, but at least two months are required if your tax preparer did not file your most recent business tax return
Eligibility
Loan uses and eligibility
- Loan amountsMinimum of $150,000. Up to $5 million with two months of bank statements, or up to $3 million for the P&L-only option without bank statements.
- Loan purposesPurchase, cash-out refinance, rate-and-term refinance, and delayed financing.
- Eligible propertiesPrimary residences, second homes, and investment properties.
- Statement preparationP&L statements must be prepared by a qualified third party who is not related to the borrower or associated with the borrower's business. Program materials variously list a CPA, an EA, a licensed tax preparer.
- Credit eventsTwo years of seasoning are required after a foreclosure, short sale, bankruptcy, or deed-in-lieu.
Next Steps
Explore your P&L mortgage options
Contact 1st Florida Lending to review your documentation option, requested loan amount, property type, and the credit and LTV requirements that apply to you. Use this checklist to organize the details before you proceed:
- Identify your loan purpose: purchase, cash-out refinance, rate-and-term refinance, or delayed financing.
- Identify the property type: primary residence, second home, or investment property.
- Decide whether you will use a P&L-only statement or a P&L statement supported by two months of bank statements.
- Confirm whether one year or two years of P&L history is required, and which third-party preparers are accepted.
- Review your credit score and requested LTV together. The minimum score and maximum LTV are not interchangeable qualifications.
- Check your requested loan amount against your documentation option: up to $5 million with two months of bank statements, or up to $3 million without bank statements.
- If it applies to you, review the two-year seasoning requirement after a foreclosure, short sale, bankruptcy, or deed-in-lieu.
FAQ
Common Questions
01What's the difference between a bank statement loan and a P&L loan?
Both are non-qualified mortgage (non-QM) options for self-employed borrowers. The main difference is how you document your income.
A bank statement loan uses 12 to 24 months of bank statements to verify income. A P&L loan uses at least one P&L statement from your business.
02What interest rate can I expect on a P&L loan?
P&L loan rates may be higher than conventional mortgage rates because the lender relies on alternative income documentation. Your rate depends on several factors, including:
- Your credit score
- The strength of your P&L statement
- Your loan amount
- Your down payment amount
- Current market conditions
Rates are not quoted in this overview. Contact 1st Florida Lending to request current program details for your scenario.
03Can I use a P&L loan to buy an investment property?
Yes. Eligible properties include primary residences, second homes, and investment properties, including properties purchased to start or expand a real estate portfolio.
04Why choose 1st Florida Lending?
1st Florida Lending offers alternative mortgage options, including P&L loans, bank statement loans, debt service coverage ratio (DSCR) loans, and other non-QM programs. Our team works with self-employed borrowers to help them find financing that fits their needs.
Our P&L program offers two documentation options, several loan purposes, and guidance from our loan officers throughout the process. Whether you are financing a primary home or an investment property, contact us to discuss your options and request current rates and program details. Speak with a Loan Officer today to learn more about our P&L mortgage loan program or take the first step and get started online.
05Is there a minimum income requirement for P&L loans?
There is no fixed minimum income requirement. Your P&L statement must show enough income to support your debt-to-income (DTI) ratio and the loan payment you are requesting, including property taxes, insurance, and any homeowners association (HOA) fees.
06What documentation is required for a P&L loan?
To use a profit and loss statement to document your income, the statement must:
- Be prepared by an independent, licensed CPA, an EA, or a CTEC-registered tax preparer.
- Be signed by both the tax preparer and the borrower.
- Be dated within 90 days of closing.
- Be on the tax preparer's company letterhead, with no disclaimers that compromise the integrity of the information provided.
The tax preparer must also confirm that they:
- Filed your most recent business and personal tax returns.
- Analyzed your business financial statements when preparing the P&L.
- Are not related to you or associated with your business.
Additional bank statement requirement: If the tax preparer did not file your most recent business tax return, you must also provide at least two months of business bank statements covering the most recent two-month period.
07Who can qualify for a P&L loan?
P&L loans are designed for self-employed individuals, business owners, freelancers, and independent contractors. To qualify, you must demonstrate at least two years of consistent self-employment income, strong credit, and financial stability. Borrowers with W-2 income typically use standard income documentation instead.
The two-year self-employment history requirement is separate from the period your P&L statement covers.
08What types of businesses qualify for P&L loans?
Many types of self-employed businesses can qualify, including consultants, contractors, real estate agents, attorneys, doctors, dentists, accountants, freelancers, and small business owners. The key is consistent, verifiable business income, not a particular industry.
09Does the minimum credit score qualify me for the maximum LTV?
No. The minimum credit score does not automatically qualify you for the maximum LTV. The program highlights a FICO score of 640 for up to 75% LTV and a minimum score of 680 for up to 80% LTV. The P&L-only option separately requires a minimum credit mid-score of 720. Review these requirements together and confirm which combination applies to your documentation option.
10Do I need a CPA to prepare my P&L statement?
Not necessarily. Your statement may be prepared by a licensed CPA, an EA, or a CTEC-registered tax preparer who is not related to you or associated with your business. It must be signed by both you and the preparer, dated within 90 days of closing, and on the preparer's official letterhead. See “What documentation is required for a P&L loan?” above for the full requirements.
Explore your P&L mortgage options
Contact 1st Florida Lending to discuss your options and request current rates and program details.
This overview is for general information only and is not a commitment to lend. All loans are subject to credit approval, underwriting, and confirmation of current program requirements, which may change.
1st Florida Lending Corp · Direct Mortgage Lenders · NMLS #359304 · State #MLD1069 · 2151 Consulate Dr., Suite 8, Orlando, FL 32837 · 800-655-1345 · When Banks Say No! We Say YES!® · Equal Housing Opportunity.