The simplest documentation path in Non-QM lending. Qualify with a CPA-prepared Profit & Loss statement — no tax returns, no bank statements, no business documentation review beyond the P&L itself. Built for established Texas business owners whose CPA can attest to true cash flow.
A P&L Only loan is the simplest documentation Non-QM product. The borrower provides a single document — a Profit & Loss statement prepared and signed by a licensed CPA — and that's the qualifying income proof. No tax returns, no bank statements (most lenders), no Schedule E rental income worksheets, no K-1 deep-dives.
The product exists because some self-employed borrowers have CPA-attested business numbers that genuinely reflect their financial position better than tax returns or bank statements would. Common profiles: law firm partners with K-1 income, medical practice owners, accountancy firm partners, established consulting practices. These borrowers have audited or reviewed financial statements as a matter of normal business operation; lenders that accept P&L Only are essentially relying on the CPA's professional reputation.
P&L Only loans typically have higher rates (~0.25–0.50% above bank statement) and stricter credit/reserve requirements (680+ credit, 6 mo PITIA reserves). The trade-off: dramatically simplified documentation. For borrowers who would otherwise need to assemble 24 months of statements across multiple business and personal accounts, the P&L Only path saves significant time and complexity.
P&L Only loans rely heavily on the CPA's professional reputation. The lender accepts the P&L because a licensed CPA signed it under their professional liability insurance. Not all CPAs will sign a P&L for mortgage purposes — some firms prohibit it. Confirm with your CPA before pursuing this product. Trade-off: simplest documentation in Non-QM, but slightly higher rate and stricter credit/reserves than other paths.
| Tier | P&L Period | Min Credit | Max LTV — Purchase | Max LTV — Cash-Out | Typical Rate |
|---|---|---|---|---|---|
| Premium | 12 mo | 740+ | 85% | 75% | 8.250% |
| Standard | 12 mo | 700–739 | 80% | 75% | 8.500% |
| Standard | 24 mo | 680–699 | 80% | 70% | 8.750% |
| Tier-3 | 24 mo | 660–679 (limited) | 75% | 65% | 9.000%+ |
| Required Element | Detail | Why It Matters |
|---|---|---|
| CPA Letterhead | Signed, dated, license number | Authenticates document |
| Business Name | Full legal entity name | Matches title/loan docs |
| Period Covered | 12 or 24 months ending recent | Lender uses dated period |
| Gross Revenue | Total income | Top-line qualifier |
| Total Expenses | Itemized or summarized | Net calculation basis |
| Net Profit | Bottom line | Primary qualifying figure |
| CPA Statement of Confidence | "Prepared in accordance with..." | Professional attestation |
| CPA Signature | Original or e-signature | Required for validity |
*Some lenders accept "compilation" P&Ls (CPA prepares without verification); others require "review" or "audit" level (CPA verifies underlying records). Compilation is most common; audit is rare for residential mortgage.
April 2026 illustrative rates. Contact Ethan for current pricing.
750 credit · 8 yrs partner · K-1 income hard to document
720 credit · Solo dental practice · 6 yrs
760 credit · CPA partner · 12 yrs · Premium 85% LTV
700 credit · 5 yrs · 24-month P&L required
730 credit · Consulting practice · Equity for renovation
New business · No CPA relationship · Conventional viable
NEXA accesses 200+ wholesale lenders. Below are the top Non-QM partners for this program.
P&L Only is a niche product. Only a handful of Non-QM wholesale lenders accept it (Deephaven leads, Angel Oak second, Flagstar for TX 50(a)(6)). Some lenders accept P&L Only on purchase but not refinance, others vice versa. NEXA confirms each lender's current P&L Only program before submitting — programs change quarterly.
| Factor | P&L Only | Bank Statement | Conventional |
|---|---|---|---|
| Documentation | 1 doc — CPA P&L | 12/24 mo statements | Tax returns + W-2 |
| Time to Assemble Docs | Hours | Days–weeks | Days |
| CPA Required | YES | Optional | No |
| Typical Rate | 8.25–8.75% | 8.0–8.5% | 6.5–7.0% |
| Min Credit | 680 | 660 | 620 |
| Max LTV — Purchase | 85% | 90% | 97% |
| Reserves | 6 mo | 3–6 mo | 0–2 mo |
| Best Profile | Established CPA-using business | Self-employed without CPA | W-2 / strong returns |
P&L Only typically prices ~0.25% higher than bank statement loans but offers dramatically simplified documentation. Worth the premium when:
Some accounting firms have policies prohibiting partners from signing P&Ls for mortgage qualification due to professional liability concerns. Solution: Confirm CPA willingness BEFORE pursuing P&L Only path. If your CPA refuses, switch to bank statement loan or change CPAs (large change for one transaction).
Lender may cross-check the P&L net profit against your most recent tax return. If P&L shows $300K net but Schedule C shows $180K — major red flag. Solution: Have CPA reconcile differences (depreciation timing, adjustments, etc.) in attached letter. Significant unexplained discrepancies = file declined.
Generic "to whom it may concern" letters with no license number, no period covered, no signature get rejected. Solution: Use lender's P&L template if provided. Otherwise ensure CPA letter includes: letterhead, license number, period covered (specific dates), gross revenue, expenses, net profit, signature, date within 60 days.
Almost no P&L Only lender accepts businesses under 2 years. The product relies on CPA having multiple years of records to prepare credible financials. Solution: Use bank statement (often accepts 12 months for newer businesses) or wait until 2-year mark.
CPAs prepare three levels of P&L: Compilation (CPA assembles without verification — most common), Review (limited verification), Audit (full verification — rare/expensive). Some lenders accept compilation only; others require review or audit. Solution: Confirm lender requirement before CPA engagement. Compilation is fine for most P&L Only programs; don't pay for audit-level if not required.
Borrower owns three S-Corps. Each has separate P&L. Lender wants consolidated picture. Solution: Have CPA prepare both: (a) individual P&Ls per entity, and (b) consolidated/combined P&L showing total net profit attributable to borrower. Submit both to lender.
P&L shows $400K net last year but $250K this year. Lender uses lower or rejects. Solution: CPA letter explaining temporary factors (one-time client loss, market disruption, planned reduction). For genuine decline, accept lower qualifying or wait for stabilization.
P&L Only cash-out on Texas homestead is still 50(a)(6): 80% LTV cap, 12-day notice, 2% closing-cost cap, in-person closing, spousal joinder, "once 50(a)(6), always 50(a)(6)." Limited Non-QM lenders that handle this. Solution: Use Flagstar — primary Texas-50(a)(6) Non-QM partner. Build 12-day notice into closing timeline.
Send Ethan a sample of your CPA-prepared P&L and he'll tell you which lenders accept it, what qualifying income that supports, and what rate to expect. Free review.
