Profit & Loss Loans · Maryland & Virginia · NMLS #2656628

Your Business Is Doing Well.
Your Taxes Don't Tell the Full Story.

Profit & Loss (P&L) loans let Maryland and Virginia business owners qualify on their business's actual performance, not their tax-return income after write-offs. If your business generates strong revenue, you may qualify even if your AGI looks low on paper.

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No tax returns required P&L prepared by an eligible tax professional 12 or 24 months Business owners & self-employed

Ken Powell

Mortgage Loan Officer · Fairway Home Mortgage

NMLS #2656628 · Equal Housing Lender

What Is a P&L Loan?

The Mortgage for Business Owners Who Write Off Everything.

Many self-employed borrowers reinvest heavily in their business, resulting in low taxable income on their tax returns, even though their business generates strong revenue. A P&L loan uses your Profit and Loss statement prepared by an eligible tax professional (a CPA, Enrolled Agent, CTEC preparer, Chartered Tax Adviser, or tax attorney, depending on the program) to assess your actual earning capacity.

The Conventional Loan Problem

✗Uses AGI from tax returns, drastically reduced by deductions
✗Business owners who write off expenses get penalized
✗Strong businesses with high revenue often declined
✗Seasonal or cash-based businesses disqualified

The P&L Loan Solution

✓Uses your Tax-professional-prepared P&L, actual business income
✓Write-offs don't hurt your qualifying income
✓Flexible underwriting based on real business performance
✓Great for seasonal and cash-based businesses

In plain English: Instead of looking at your tax returns, we use your Profit & Loss statement prepared by your accountant to determine your income. This gives you credit for the income your business actually generates, not just what's left after write-offs.

P&L vs. Bank Statement

Which Program Is Right for You?

Both programs qualify self-employed borrowers without tax returns. The right choice depends on your specific situation.

Profit & Loss Loan

Best when your bank statements are complex, inconsistent, or show high expenses

✓Less documentation than bank statement programs
✓Expense factor may be lower than bank statement method
✓Good for co-mingled business/personal accounts
✓P&L must be prepared and signed by your CPA or tax preparer
✓12 or 24 months of P&L history

Bank Statement Loan

Best when your bank statements show consistent, strong deposits

✓12 to 24 months of personal or business bank statements
✓No CPA letter required in most cases
✓Good for businesses with clean, high-volume deposits
✓Personal or business accounts accepted

Not sure which fits your situation? A 15-minute call with Ken will tell you exactly which program makes the most sense, and what you'll likely qualify for.

Non-QM Options

Not Your Average Financing Situation? No Problem.

Through Fairway's Non-QM loan options, we offer mortgage solutions for borrowers with almost any financial situation.

Bank Statement Loans

Qualify using 12 to 24 months of recent bank statements instead of traditional tax returns. For self-employed borrowers and those without a traditional income line.

Profit & Loss Loans

Use your P&L statement prepared by an eligible tax professional to assess income. Great for business owners who reinvest earnings and have low taxable income despite strong revenue.

DSCR Loans

Qualify on rental income from the subject property. The lender qualifies the borrower using the rental income the property is expected to generate.

High DTI Options

Options for borrowers with debt-to-income ratios that wouldn't normally qualify for traditional loans. Ask Ken about current thresholds.

Assets as Qualifying Income

Your liquid assets, bank accounts, investments, retirement accounts, or CDs, are converted into qualifying income. Built for high-net-worth borrowers. How it works →

Interest-Only Options

Pay only the interest for an introductory period. Great for the savvy borrower looking for lower initial payments to better deploy assets.

ITIN Loans

For U.S. residents and non-resident aliens not eligible for a Social Security number. Qualify using your Individual Taxpayer Identification Number (ITIN).

Derogatory Credit Events

Programs available for borrowers who have had significant derogatory credit events, including bankruptcies, foreclosures, and short sales.

Excessive Financed Properties

Options designed for investors with up to 50 financed properties, well beyond conventional lending limits.

Fairway disclaimer: Debt-to-income (DTI) ratio is monthly debt/expenses divided by gross monthly income. Not all customers will qualify. Information, rates and programs are subject to change without notice. All products are subject to credit and property approval. Fairway Independent Mortgage Corporation NMLS #2289.

What You'll Need

P&L Loan Document Checklist.

Primary Documents

✓
P&L Statement (CPA or tax preparer prepared)
Covering the most recent 12 or 24 months. Must be prepared and signed by the same entity that completes your tax returns.
✓
2 years of business operation
Verified by business license, CPA letter, or other documentation
✓
12 to 24 months business bank statements
Used to verify the accuracy of P&L statement

Standard Items

✓Credit report (pulled by lender)
✓Government-issued ID
✓Asset statements (bank, investment accounts)
✓Purchase contract (for purchase transactions)

Note on CPA requirement

The CPA or tax preparer who signs your P&L must be the same entity that prepares your tax returns. This ensures the statement accurately reflects your business's financial health.

FAQ

P&L Loan Questions, Answered Plainly.

What is the benefit of a P&L loan over a bank statement loan?+

P&L loans involve less documentation than bank statement programs and the expense factor may actually be lower, which means more qualifying income. They're especially beneficial for borrowers with co-mingled accounts, inconsistent cash flow, or very high business expenses on their bank statements.

Do I need my CPA to prepare the P&L, or can I do it myself?+

Your Profit and Loss statement must be prepared and signed by your CPA or tax preparer, the same person who files your tax returns. Self-prepared statements are not accepted.

Is this a legitimate loan program?+

Absolutely. P&L loans are an established alternative (non-QM) loan program designed specifically for self-employed borrowers. They've been offered by institutional investors and major lenders for years. The underwriting is rigorous, Fairway verifies your P&L against your business bank statements to confirm accuracy.

What's the interest rate on a P&L loan compared to conventional?+

Rates on P&L loans are typically slightly higher than conventional loans, that's the tradeoff for qualifying without tax returns and without the same documentation requirements. However, for many business owners the access to financing without jumping through conventional hoops is well worth it.

Can I use a P&L loan for an investment property?+

Yes. P&L loans are available for primary residences, second homes, and investment properties depending on the investor and program. Investors often pair P&L loans with DSCR loans to build portfolios without relying on personal tax return income.

How long do I need to be in business?+

Most P&L programs require at least 2 years of business operation history, verified by a business license or CPA letter.

Your Business Is Doing Well.Your Taxes Don't Tell the Full Story.