P&L Mortgage

Your P&L tells the story your deposits can't.


Qualify for a mortgage using a CPA-prepared Profit & Loss statement. Designed for self-employed borrowers whose true income isn't reflected in traditional documentation — or bank statements alone.




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Key Features

What is a P&L Mortgage Loan?

A P&L mortgage loan lets you qualify based on a CPA-prepared Profit & Loss statement rather than tax returns, W-2s, or months of bank statements. It's built for business owners whose financial picture is more accurately told through profitability than through deposits.

Where a bank statement loan analyzes cash flow patterns across 12–24 months of statements, a P&L loan uses your accountant's formal accounting of what your business actually earns — after revenue, before or after expenses, depending on the program. The result is a cleaner, more defensible income narrative for underwriting.

Because NASB underwrites every loan in-house as a portfolio lender, our team can evaluate P&L income with the flexibility that broker-channel lenders simply can't offer. There's no investor overlay standing between your file and an underwriting decision.

When a P&L loan outperforms a bank statement loan

  • Your business expenses are high but profitability is strong
  • Deposits are inconsistent, commingled, or hard to analyze
  • You have multiple revenue streams better captured in one document
  • You prefer a single CPA-certified document over 12+ months of statements
  • Annual deposits exceed $5MM and fall outside standard BSL guidelines

Who the P&L Loan Is Built For

NASB's P&L mortgage is designed for a specific set of borrower situations where standard documentation doesn't reflect what the business actually earns.

Business owners with high expense ratios

If aggressive write-offs or reinvestment strategies compress your apparent income on paper, a P&L can reflect true profitability — not just what the tax return shows after deductions.

Borrowers who work closely with a CPA

If you already maintain a formally prepared P&L with your accountant, this loan eliminates the need to compile 12–24 months of bank records. One document, professionally prepared.

Borrowers with unclear or inconsistent deposits

Commingled accounts, seasonal cash flow, client retainers, or mixed personal/business deposits can make a bank statement loan analysis messy. A P&L bypasses that complexity entirely.

Entrepreneurs with multiple revenue streams

Multiple businesses, LLCs, or income sources are difficult to underwrite across separate bank accounts. A consolidated P&L brings them together into a single, reviewable picture.

High-revenue borrowers ($5MM+ in deposits)

Some bank statement loan programs have upper-limit constraints that don't accommodate very high-volume businesses. A P&L-based qualification may be the right path when standard BSL guidelines don't fit your scale.

Borrowers who'd rather not disclose tax returns

When you qualify on P&L income alone, NASB does not require tax returns or a 4506-C. For borrowers who prefer to keep tax filings private, or whose returns simply don't reflect current performance, this removes a document many other loan types require.

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P&L Loan vs. Bank Statement Loan

Both are Non-QM options for self-employed borrowers. Here's how they differ — and when each makes sense.

FactorBank Statement LoanP&L Mortgage Loan
Income documentation12–24 months of bank statementsCPA-prepared Profit & Loss statement
Income calculation basisDeposit analysis (with expense factor)Business profitability, adjusted for non-cash expenses
Best suited forBorrowers with consistent, analyzable depositsBorrowers with strong profitability but complex or inconsistent deposits
Documentation volumeHigher — extensive statement reviewLower — P&L + 2 months of business bank statements
CPA involvement requiredNot typicallyYes — CPA, Tax Attorney, Enrolled Agent, or credentialed tax professional
Tax returns requiredNot requiredNot required when qualifying on P&L income only
Investment property eligibleNo — primary and second home onlyNo — primary and second home only
Income clarity for underwritingModerate — deposit-by-deposit analysisHigh — formal accounting snapshot

 

Why Self-Employed Borrowers Choose NASB

As a federally chartered portfolio bank, NASB underwrites and holds every loan we originate. That distinction matters for P&L borrowers — your file is evaluated on its own merits, not passed through investor overlays that add restrictions a broker can't override.

In-house underwriting

Our underwriting team evaluates your P&L directly — no third-party sign-off required for decisions or exceptions.

No investor overlays

We lend against our own guidelines. Broker-channel Non-QM loans often add investor restrictions on top of the base program — NASB doesn't.

Portfolio lender

We hold loans on our balance sheet. We have a long-term stake in getting the underwriting right — not just closing the file.

Non-QM specialists

Our loan officers work complex self-employed files daily. If your income doesn't fit a conventional mold, we know how to structure it.




How a P&L Loan Works at NASB

Our loan officers specialize in Non-QM income structures. Here's what the process looks like.

1

Talk to a loan officer

We review your income situation and determine whether a P&L or BSL structure is the better path for your file.

2

Gather your P&L

Your CPA or credentialed tax professional prepares a 12-month P&L. The ending date must be within 45 days of your application date.

3

In-house underwriting

Our team reviews your P&L, business narrative, and 2 months of business bank statements — no investor overlays required.

4

Clear to close

Once approved, we move toward closing. Because we hold the loan, we stay your lender for the life of the loan.




P&L Loan Requirements

Here's what you'll need to qualify — straight from our underwriting team.

Documentation Requirements

  • Profit & Loss statement — minimum 12-month period; ending date must be within 45 calendar days of application date
  • Prepared by a licensed tax professional — CPA, Tax Attorney, Enrolled Agent, or credentialed paid preparer (PTIN); license verified at closing via CPAVerify.org or IRS Return Preparers Database
  • Business bank statements — 2 months most recent; must reflect at least 75% of the average monthly revenue reported on the P&L
  • Completed business narrative — details the size, scope, and operations of the business
  • Tax Professional Packet — completed by the subject business's tax preparer or accountant
  • Tax returns not required — 4506-C is not required when qualifying on P&L income only

Eligibility Requirements

  • Business existence — minimum 2 years of operating history
  • Borrower ownership — at least one borrower must hold 25% or more ownership in the qualifying business
  • Self-employment history — minimum 2 years in the same line of work; combination of experience and formal education is acceptable
  • Eligible occupancy — primary residence and second home only; investment property is not eligible
  • Minimum credit score — 700
  • Maximum LTV — 80%
  • Loan amount — Minimum $200,000, Maximum $832,750
  • Maximum DTI — 50%

All loans subject to underwriting approval and eligibility criteria. Contact a NASB loan officer for program details specific to your situation.



P&L Mortgage FAQs

It must be prepared by a licensed or credentialed tax professional — which includes a Certified Public Accountant (CPA), Tax Attorney, Enrolled Agent, or a paid tax preparer with an IRS-issued PTIN. NASB verifies the preparer's current active license or status through independent sources such as CPAVerify.org or the IRS Return Preparers Database. If you work closely with an accountant or tax professional, this is typically a straightforward document to produce.
NASB's underwriting team starts with your gross income for the 12-month period, subtracts operating expenses and taxes on business income, then adds back wages or payroll paid to the borrower, non-cash expenses, and interest expense to arrive at an adjusted annual income. That figure is divided by 12 to get an adjusted monthly income, then any business term debt payments are subtracted, and the result is multiplied by your ownership percentage to get your qualifying monthly income. Your loan officer can walk through the specific calculation for your file.
NASB requires your two most recent months of business bank statements. These are used to verify revenue — specifically, the statements must reflect at least 75% of the average monthly revenue shown on your P&L. They're not used to calculate income the way a bank statement loan does; they're a corroboration step to confirm the business is generating the revenue your P&L reports.
No. When qualifying solely on P&L income, a 4506-C is not required and tax transcripts are not obtained. This is one of the meaningful differences between a P&L loan and other mortgage programs — your qualification is based entirely on your CPA-prepared statement and supporting business documentation, not your tax filing history.
Yes, with some structure. At least one borrower must hold 25% or more ownership in the qualifying business, and that business must have at least two years of operating history. A CPA-prepared P&L can consolidate income from multiple entities, but each business's operations, ownership, and revenue will be reviewed individually as part of the business narrative and income calculation.

No. NASB's P&L program is limited to primary residences and second homes. Investment property purchases are not eligible under this program. If you're a real estate investor looking for a Non-QM option, a DSCR loan may be the appropriate path — it qualifies based on rental property cash flow rather than personal income.

When you work with NASB directly, your file is underwritten by our team against our own guidelines — not forwarded to an investor who applies a separate overlay. That distinction matters for Non-QM files because investor overlays are often more restrictive than the lender's base program. As a federally chartered portfolio bank, we hold what we originate, which means we evaluate your P&L on its own terms with no third-party approval required.
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Can’t Find What You Need?

NASB offers additional non-QM loan products that may better suit your unique situation. Speak with one of our knowledgeable loan officers to discuss your unique circumstances and explore the mortgage solutions that best suit your needs.


Loan Type2Who is it For?Minimum Credit ScoreMinimum Loan AmountMinimum Down Payment

Credit Event Home Loan1

For buyers with a recent bankruptcy, foreclosure, or major credit event.

Borrowers 12+ months past a credit event with savings to put down620$200,00030%

Bank Statement Loan

Uses bank statements (not tax docs) to verify income.

Self‑employed borrowers, business owners, or independent contractors700$200,00010% with mortgage insurance*

1099 Loan

Uses 1099 income instead of traditional income docs.

Independent contractors, freelancers, and gig workers700$200,00020%*

DSCR Loan

Qualifies based on rental property cash flow instead of income.

Real estate investors700$200,00020%

Asset Depletion Loan

Uses assets (not income) to qualify for a mortgage.

High-net-worth borrowers or retirees using liquid assets to qualify700$200,00020%*

Jumbo Loan

For higher loan amounts or loans that don't meet standard guidelines.

Borrowers with home purchases above the conforming limit720$805,50120%

*10% down payment with no mortgage insurance option available with 740 FICO. Talk to a NASB loan officer for more details.



Your income has a story.
Let's tell it the right way.

If your business profitability doesn't show up cleanly in your deposits or tax returns, a P&L mortgage loan at NASB may be the path to qualification. Talk to a Non-QM specialist today.

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1Minimum loan amount of $200,000 required to apply. Exceptions include mortgage products for properties located within the Greater Kansas City metropolitan area and its surrounding areas. Contact a NASB Loan Officer for more details on the specific areas and/or zip codes excluded. 

2Additional eligibility criteria for each loan product may exist. Visit nasb.com for more information on each loan product type. Loans are subject to underwriting and eligibility criteria, and other factors. Your loan officer will provide you with more information regarding a specific loan and what may work best for your situation. The 1099 Loan, DSCR Loan, and Credit Event Home Loan products are not available in New York, the Chicago or Baltimore metropolitan areas and not in all locations or for all property types. Contact a NASB Loan Officer for more details on product eligibility, specific areas and/or zip codes excluded.