Profit & Loss

Most lenders require a licensed CPA, enrolled agent or other licensed tax preparer, who usually signs the statement or provides a letter supporting it. A P&L you prepare yourself is generally not accepted on its own.

Yes. Self-employed borrowers qualify every day, either with tax returns on a conventional loan or with bank statements, a P&L or 1099s on a Non-QM loan. The right path depends on how your income shows up on paper, and as a broker we can price both.

It depends on the program. Conventional loans typically use two years of personal and business tax returns. Bank statement loans use 12 to 24 months of statements, P&L loans use a CPA-prepared profit and loss statement, and 1099 loans use your 1099s. Most programs also ask for proof of assets and evidence the business is active.

Not because you are self-employed. If your tax returns qualify you for a conventional loan, you get conventional pricing. Non-QM programs like bank statement and P&L loans typically price higher, which is why we check whether your returns work first.

A Non-QM (non-qualified mortgage) falls outside the standard Qualified Mortgage rules, usually because income is documented with bank statements, a P&L, assets or rental income instead of tax returns. Lenders are still required to verify that you can repay. It is a documentation difference, not a subprime product.