WHAT IS A 1Y + 2Y P&L LOAN?
This alternative documentation loan allows self-employed borrowers to qualify using a combination of a year-to-date (1Y) profit and loss (P&L) statement and two years of prior P&Ls, reviewed by a licensed CPA or tax preparer.
1Y + 2Y P&L
LOAN OVERVIEW:
The 1-Year and 2-Year P&L loan programs are designed for self-employed borrowers and small business owners who may have complex tax situations but can show that their business is profitable.
Instead of requiring full tax returns, borrowers can qualify using CPA-prepared profit and loss statements from either the past 12 months or 24 months, depending on the loan structure. This allows more flexibility when traditional income documentation doesn’t accurately reflect the borrower’s financial health due to write-offs or fluctuating income.
This program is ideal for entrepreneurs who want to leverage business success without sacrificing flexibility, and provides a more accessible route to homeownership or refinancing for the self-employed.
PROGRAM BENEFITS
- Ideal for self-employed borrowers and small business owners with non-traditional income
- Bank statements are not required for LTVs up to 70%, simplifying documentation
- Loan amounts up to $2.5 million available for qualified borrowers
- Option to qualify with either 1 year or 2 years of profit and loss statements
- Perfect for borrowers with heavy tax write-offs who still show strong business income
- Can be used for both purchase and refinance transactions
REQUIREMENTS
- Minimum FICO score of 660
- P&L statements must be prepared and signed by a Licensed CPA, CTEC-registered tax preparer, or IRS Enrolled Agent
- Borrower must provide a current-year P&L and P&Ls from the two most recent tax years
- Maximum CLTV up to 80%, depending on borrower profile and documentation strength
- Lenders may require additional documentation or verification depending on the loan amount and occupancy type
LOAN OPTIONS:
The 1-Year and 2-Year P&L loan is a strong option for self-employed borrowers who prefer not to submit full tax returns but can document their income through well-maintained profit and loss statements.
By working with a CPA or approved tax preparer, borrowers can demonstrate consistent business performance without the complexity of tax write-offs getting in the way. This program is ideal for business owners who maintain clean financial records and want a streamlined qualification process.
Whether you’re buying a new home, refinancing, or expanding your portfolio, the P&L loan offers flexibility without sacrificing structure — especially when bank statements aren’t required for lower LTVs.
How Do You Qualify for a 1Y + 2Y P&L Loan?
To get started, call us at (213) 810-2091. We’ll walk you through the process and help determine if your business income qualifies.
Borrowers must provide three years of profit and loss statements — including a year-to-date P&L for the current year. These statements must be prepared or reviewed by a licensed CPA, CTEC-registered tax preparer, or IRS Enrolled Agent.
While tax returns aren’t required, borrowers should be able to show consistent income through recent bank statements. This loan is ideal for business owners with strong financial records who want to avoid the complexity of traditional income verification.
HOW LOW WILL YOUR PAYMENT BE?