Use Business Profits to Qualify. No Tax Returns Required.
Self-employed? Qualify for a mortgage using a CPA-prepared profit and loss statement instead of tax returns. Ideal for business owners with strong income and smart write-offs. FDIC insured.
Your business profits qualify you. Use a CPA-prepared profit and loss statement instead of tax returns that understate your real income.
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No Tax Returns Required
Skip the tax returns that understate your income due to business write-offs. Qualify using a CPA-prepared P&L statement that reflects your actual business earnings.
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Higher Qualifying Income
Your P&L often shows more income than tax returns. Legitimate write-offs reduce your tax liability but shouldn't reduce your mortgage buying power.
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Any Business Type
Sole proprietorships, LLCs, S-Corps, C-Corps, partnerships, and 1099 contractors all qualify. Restaurants, retail, construction, consulting — any legitimate business.
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Simple Documentation
Your CPA prepares the P&L statement from your business books and records. No need to gather years of complex tax returns with multiple schedules.
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Multiple Property Types
Finance primary residences, second homes, and investment properties. Single-family, condo, townhome, and multi-unit (2-4 units) eligible.
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Purchase or Refinance
Use P&L qualification for home purchases, rate-and-term refinances, and cash-out refinances. Access equity or buy your next home on your business income.
Eligibility
Who Qualifies for a P&L Loan?
P&L loans are designed for self-employed borrowers with at least 2 years in business whose tax returns understate their actual income.
P&L Documentation
Required Documents
CPA-prepared P&L statement (12 or 24 months)
CPA comfort letter with license number
Business license or proof of self-employment
2+ years self-employment in same business
Bank statements for reserve verification
How it works: Your CPA prepares a profit and loss statement from your business books. Net income (revenue minus expenses) is used as your qualifying income. If P&L shows $15,000/month net, that's your qualifying income — even if your tax return shows less.
Loan Requirements
Credit & Down Payment
Minimum 620-660 credit score (720+ for best rates)
10-25% down payment for purchase
Max 80% LTV for cash-out refinance
Loans up to $3 million+
Reserves & Property
6-12 months PITIA reserves after closing
Primary, second home, or investment property
1-4 unit residential properties
Condos, townhomes, single-family eligible
P&L Refinance
Refinance Using Your Business Income
Access equity, consolidate debt, or optimize your mortgage using your CPA-documented business profits — no tax returns needed.
Your CPA prepares a profit and loss statement from your business records. The net income on your P&L becomes your qualifying income — often higher than what tax returns show.
Annual Revenue: $480,000 Business Expenses: -$300,000 Net Profit (P&L): $180,000/yr Qualifying Income: $15,000/mo
Prefer bank deposits? Explore our Bank Statement Loan for deposit-based qualification.
P&L Purchase
Buy a Home on Your Business Profits
Self-employed and ready to buy? Your P&L statement shows lenders what your tax returns don't — your real earning power.
With a P&L loan, your CPA-documented business income determines your qualification. Smart write-offs reduce your taxes — not your mortgage buying power.
Tax Return Income: $72,000/yr P&L Net Income: $156,000/yr Qualifying Boost: +117% Monthly Qualifying: $13,000/mo
Understanding the costs associated with P&L loans helps you plan your purchase or refinance.
Cost Item
Purchase
Refinance
Down Payment
10-25%
N/A
Interest Rate
6.50-7.50%*
6.50-7.50%*
Closing Costs
2-5% of loan
2-5% of loan
Origination Fee
0.5-1.5%
0.5-1.5%
Appraisal Fee
$500-$1,000
$500-$1,000
CPA Letter Cost
$300-$800 (paid to CPA)
$300-$800 (paid to CPA)
Reserves Required
6-12 months PITIA
6-12 months PITIA
Max LTV
Up to 80-90%
Up to 80% (cash-out)
Rate Factors for P&L Loans
Your rate depends on credit score, LTV, loan amount, property type, and documented P&L income. Borrowers with 720+ credit, lower LTV ratios, and stronger net income receive the most competitive pricing.
*Rates shown are illustrative. Actual rates vary by credit profile, loan amount, and market conditions. Contact us for a personalized quote.
Loan Comparison
P&L Loan vs. Bank Statement Loan
Both serve self-employed borrowers with non-traditional documentation. Here's how they differ.
P&L Loan
Bank Statement
Qualification Method
CPA-prepared P&L net income
Bank deposits over 12-24 months
Ideal Borrower
Business owners with write-offs
Self-employed with clean deposits
Self-Employment Required
2+ years in same business
2+ years self-employed
Min. Credit Score
620-660
620
Min. Down Payment
10-25%
10-20%
Max Loan Amount
$3M+
$3M+
Documentation
CPA letter + P&L statement
12-24 mo bank statements
Rate Premium
+0.5-1.5% vs conventional
+0.5-1.5% vs conventional
Best When
Deposits include non-income items
Deposits cleanly reflect income
Can Combine Income
Yes — W-2, rental, other
W-2 + self-employment
*Choose P&L if your bank deposits include transfers, loans, or reimbursements that complicate analysis. Choose bank statement if your deposits cleanly reflect your income.
Payment Calculator
Estimate Your P&L Loan Payment
Toggle between Refinance and Purchase to see your estimated monthly payment. Qualify using your CPA-prepared profit and loss statement.
Estimates only. Actual rates and payments will vary based on credit, income documentation, and property. Subject to credit approval.
The Process
Your P&L Loan Journey
From CPA letter to funding in 21-30 days. Here's how it works.
1
Get Your CPA Letter
3–7 Days
Have your CPA or enrolled agent prepare a profit and loss statement covering the most recent 12-24 months, along with their attestation letter including license number and signature.
2
Pre-Qualification & Rate Lock
1–3 Days
We review your P&L net income, verify your business, and present your options including qualifying income and loan amount. Lock your rate when you're ready to proceed.
3
Processing & Underwriting
14–21 Days
P&L income verification, business existence confirmation, appraisal ordered, and title work completed. Our underwriters specialize in self-employed income documentation.
4
Closing
1 Day
Sign your final documents. For purchases, get the keys to your new home. For refinances, start saving or receive your cash-out funds within days.
Frequently Asked Questions
P&L Loan FAQs
Answers to the most common questions about P&L loans, CPA documentation, and qualifying with business profits.
No. Texana Bank Mortgage uses a soft credit inquiry for pre-qualification, which has absolutely no impact on your credit score. You can check your rate, explore loan options, and get pre-approved without any effect on your credit. A hard inquiry only occurs later if you formally move forward with a full application.
A P&L (Profit & Loss) loan is a non-QM mortgage program that allows self-employed borrowers to qualify using a CPA-prepared profit and loss statement instead of traditional tax returns. The lender uses the net income shown on your P&L statement — typically covering the most recent 12 or 24 months — to determine your qualifying income. This is ideal for business owners whose tax returns understate their actual earnings due to legitimate write-offs and deductions.
P&L loans are designed for self-employed borrowers who have been in business for at least 2 years. Common borrowers include small business owners, freelancers, independent contractors, restaurant and retail owners, service providers, consultants, and anyone whose tax returns show significantly less income than their business actually generates. You must have a licensed CPA or enrolled agent prepare your P&L statement.
Both programs serve self-employed borrowers, but they use different documentation. A bank statement loan analyzes 12-24 months of bank deposits to calculate income. A P&L loan uses a CPA-prepared profit and loss statement showing revenue minus expenses. P&L loans can be advantageous when your bank deposits include transfers, loans, or non-income items that complicate bank statement analysis. Some borrowers qualify for higher amounts with a P&L because it focuses on net business profit.
Most P&L loan programs require a minimum credit score of 620-660, depending on the lender and loan amount. Borrowers with credit scores of 720 or higher qualify for the best rates, lower down payments, and more favorable terms. Higher credit scores may also allow higher debt-to-income ratios and larger loan amounts.
The CPA letter must be prepared by a licensed CPA or enrolled agent. It must include the P&L statement covering the most recent 12 or 24 months, the CPA's license number and contact information, a statement that the P&L was prepared from the borrower's books and records, the CPA's signature and date, and the business name and borrower's name. The CPA must be independent — they cannot be a family member or have a financial interest in the transaction.
P&L loans are available up to $3 million or more depending on your documented business income, credit score, and property type. The maximum loan amount is determined by your net income shown on the P&L statement, your debt-to-income ratio, and the property value. Borrowers with strong business income and good credit can qualify for competitive loan amounts.
Minimum down payments for P&L loans typically range from 10% to 25% depending on credit score, loan amount, property type, and LTV ratio. Primary residences with strong credit profiles may qualify for as low as 10% down. Investment properties and jumbo loan amounts generally require 20-25% down.
Yes. P&L refinances are available for both rate-and-term and cash-out refinances. This is particularly useful for self-employed borrowers who want to access their home equity, consolidate debt, lower their payment, or shorten their loan term but cannot qualify through conventional underwriting due to how their tax returns report income.
Yes. Cash-out refinances are available with P&L qualification. The maximum LTV for cash-out is typically 75-80% depending on credit score and property type. Many self-employed borrowers use cash-out proceeds to reinvest in their business, consolidate high-interest debt, or fund renovations.
Most P&L loan programs require a minimum of 2 years of self-employment history in the same line of business. Some programs may accept 1 year if you have prior experience in the same industry. The lender will verify your business existence through a business license, website, professional references, or other documentation.
Virtually any legitimate self-employment qualifies, including sole proprietorships, LLCs, S-corps, C-corps, partnerships, and 1099 independent contractors. Common industries include restaurants, retail, construction, real estate, healthcare, consulting, technology, creative services, transportation, and professional services.
P&L loan rates are typically 0.5% to 1.5% higher than conventional mortgage rates. The premium reflects the alternative documentation method. Borrowers with higher credit scores, lower LTV ratios, and stronger business income qualify for rates closer to conventional pricing. The trade-off is being able to qualify without tax returns.
Yes. P&L loans are available for primary residences, second homes, and investment properties. Investment properties typically require a larger down payment (20-25%), higher credit score, and may have slightly higher rates. This can be a great option for self-employed investors who want to grow their real estate portfolio.
No — that is the primary benefit of a P&L loan. Instead of tax returns, you provide a CPA-prepared profit and loss statement. However, you will still need standard documentation such as bank statements for reserve verification, identification, property documentation, and a business license or proof of self-employment.
Most P&L loan programs require 6-12 months of PITIA (Principal, Interest, Taxes, Insurance, and Association dues) reserves after closing. Reserves can be held in checking, savings, investment accounts, or retirement accounts (typically counted at 60-70% of value). Higher loan amounts and investment properties may require additional reserves.
Yes. Many programs allow you to combine P&L income with other documented income sources such as W-2 wages from a part-time job, rental income, Social Security, pension, or other verifiable income streams. This hybrid approach can significantly increase your total qualifying income.
P&L loans typically close in 21-30 days, similar to other non-QM products. Having your CPA letter and P&L statement ready before applying speeds up the process. The key to a fast close is providing complete documentation upfront — P&L statement, CPA letter, bank statements for reserves, business license, and identification.
Month-to-month fluctuations are normal and expected. The lender looks at the overall net income across the full P&L period (12 or 24 months), not individual months. As long as your annualized net income supports the loan payment, seasonal dips or occasional loss months are acceptable. Consistent losses over the full period, however, would make qualification difficult.
Choose a P&L loan if your bank deposits include non-income transactions (transfers, loan proceeds, reimbursements) that complicate bank statement analysis, or if your CPA can document higher net income than deposits alone would show. Choose a bank statement loan if your deposits cleanly reflect your income. Both are excellent options — your loan officer can help determine which maximizes your qualifying income.
Reviews
What Self-Employed Borrowers Say About Texana Bank
Real reviews from real borrowers. See why business owners and entrepreneurs trust Texana Bank Mortgage.
I had an excellent experience working with my texana bank mortgage from start to finish. They were extremely professional, knowledgeable, responsive, and made the entire mortgage process feel much easier than I expected.
They took the time to explain everything clearly, answered all of my questions, and kept me informed throughout the entire process. I always felt like I had someone in my corner who genuinely cared about helping me reach my goals.
If you’re looking for a mortgage broker who is trustworthy, dependable, and willing to go the extra mile for their clients, I highly recommend them. I truly appreciate all of their hard work and would definitely work with them again!
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Kent Sisco
★★★★★
Adam McCormick is fantastic! Easy to work with and keep me informed every step of the way! Looking forward to working with him again in the future
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Andrea Ferrell
★★★★★
Adam was phenomenal from start to finish! He was friendly and professional. He assisted me every step of the way, walking me through the process with ease. He was always there for whatever questions I had. He was very, very patient and always reached out to me in a timely manner if I contacted him and he was unavailable at the time. Moreover, he made me feel as if he cared for more than just my loan, but me as a person!!! Texana is blessed to have him as an associate!!
Andrea
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Clay Ragsdale
★★★★★
Where to really start. Adam walked me through everything and put me at ease. I have had some bad experiences with other companies so I was digging and looking for any red flag. There was none with him and his direct talk is what did it for me. Someone that is real and just says what it is. No false hope or misdirection at anytime.
I would recommend him to anyone and definitely Someone looking for honesty and caring. The communication is top notch and a true professional.
Respectfully,
Clay
B
Belvia Lynn
★★★★★
My overall experience while working with Adam McCormick was excellent. He was very pleasant and professional.
J
Joseph Hardman
★★★★★
Adam McCormick is an absolute professional in every sense of the word. I will NEVER use any other loan officer for my financials other than Adam as long as he is in the business. His work as my loan officer was exceptional. Throughout the process, he always responded to an e-mail, responded to a text, called right back if not answering immediately. He always made you feel as though you were his only client. There was never the impression he had more important things to do other than speak with you. He worked with us through a death in the family, personal issues, and numerous other challenges. It's possible other loan officers would have given up on us during this process, but Adam stuck with us through it all. His work ethic is amazing. He is an expert in his craft. I could not possibly give a higher recommendation, he has redefined what right looks like in this business.
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Marsha Kessler-Bradshaw
★★★★★
I was about to go with another company for this refinance no cash out until I received a call from this Adam McCormick. He was so knowledgeable and made me feel very comfortable with this process. Adam is knowledgeable ,courteous, understanding and has a real passion and patience for people. 👍We are at the closing. Thank you Adam McCormick!!
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Peter Jenkins
★★★★★
My situation had its difficulties. Justin was confident and persistent through the process and we the got the result
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Dale Samuel
★★★★★
Mark has been very professional and has been very respectful to my wife and myself.
Mark has shown that genuine human qualities and really worked with us and for us.
This actually been a pleasure to get to know Mark.
J
James Fields
★★★★★
Outstanding Service and support from a truly Customer Oriented Agent! My pleasure to have worked with Mr. MCcormick.! Would follow him to next source if necessary. He is concerned in an outstanding balanced way. My pleasure to?know and do Business with him and The Bank!
JFields
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Rose Stone-Stewart
★★★★★
Texana Bank was there for us throughout the entire process. Their personableness, as well, their professionalism. As a financial institution it was nice to know that while obtaining a loan, we had a safe place to relay. They are absolutely “by the book” and at the same time makes the process easier to participate. The hospitality and genuine concern as clients was overwhelming of which we will always consider Texana Bank first, before mostly any other financial institution.
M
Mitchell Morris
★★★★★
Greg was awesome and the process was simple. I have nothing but the highest praise for the process and for Greg himself. Thank you.
R
Ronald Bylsma
★★★★★
Best refi experience of our lives, Andre was very knowledgeable and always kept us calm when things got stressful. Would recommend Mr. Andre Floyd to anyone looking for a great lending officer!
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Dejan Jajcevic
★★★★★
I’ve worked with mini bankers before and I used to do them over a decade ago myself and my experience that I had with Chad was nothing short of phenomenal. He is a wonderful Banker does a very diligent job and did not miss any moments of reassuring me where my loan was and closing I couldn’t say enough good things about him and I hope if I ever need to go through this stressful process again he is still in business to take care of me
J
James Reaves
★★★★★
Adam is awesome super friendly easy to work with always aware of what’s going on and keeps you informed which is great.
L
Lesli Hopkins
★★★★★
Lynette is absolutely awesome to work with! She takes the time to make you comfortable with the process and answers any questions completely and accurately
B
Bobby Strickland
★★★★★
Andre Floyd was ABSOLUTELY AMAZING. I just love working with him.
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Abraham Sanchez
★★★★★
Working with Greg Darlin has been an awesome experience. An honest and sincere individual. He is to the point and very very knowledgeable. I appreciate the fact that he didn’t try to give me the run around and through the entire process I learned a few things. Thank you.
Ready to Qualify on Your Business Income?
Your P&L tells the real story. Our self-employed mortgage specialists help business owners qualify using their actual business profits — no tax returns needed.
