The Michigan P&L Statement Loan Center
A profit and loss statement mortgage is the most streamlined documentation path we offer business owners. One statement, prepared by your CPA or licensed tax preparer, covering the most recent 12 months of your business, becomes the income file for your home loan. No tax returns, no W-2s, and in some cases no bank statements at all.
That matters most when your business is growing. If your company is having its best year ever, a conventional lender still judges you on the tax return you filed for a year that no longer represents your business. A P&L only mortgage, available through our lending partners, qualifies you on current performance instead. Riverbank Finance LLC arranges these loans for business owners across Michigan, from Grand Rapids to the entire state.
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How does a profit and loss statement mortgage work?
A P&L loan is a non-QM mortgage where your qualifying income comes straight from your business's profit and loss statement. The statement must be prepared by a licensed CPA, an IRS Enrolled Agent, or a CTEC-registered tax preparer, cover your most recent 12 months, and be dated within 60 calendar days of your application date.
The income math is the simplest of any self-employed program. The lender takes the net income shown on the P&L and averages it over the period the statement covers. That average becomes your monthly qualifying income. There is no expense factor to negotiate and no deposit-by-deposit review, because the statement already nets expenses out of revenue.
For larger loans there is one sanity check: if your loan amount is greater than $1,000,000, the lender requires two months of business bank statements showing deposits that support at least 80% of the P&L's average monthly gross revenue. Loans of $1,000,000 or less are true P&L only files, with no bank statement requirement at all, still requiring a 700 minimum credit score and allowing up to 75% CLTV on primary residences. If your income record is messier than a clean P&L can capture, a Michigan bank statement loan that averages 12 or 24 months of actual deposits may fit better. Both programs live in our Michigan non-QM loan lineup, and one call is enough to compare them.
For more information on P&L statement loans call us at 800-555-2098 or apply online today!
Key Benefits of a P&L Only Mortgage
- The Fastest Documentation Path: One CPA-prepared statement replaces the stack of tax returns, transcripts, and schedules a conventional file demands. If your books are current, your loan file practically assembles itself.
- Qualify on This Year's Business: Your income is calculated from the most recent 12 months of actual performance, not a tax return that may be two filing seasons old. Growing businesses get credit for the growth.
- Works Around Extensions: If you file extensions or your returns are still with your accountant, the P&L program keeps your home purchase moving anyway.
- Substantial Loan Amounts: Programs available through our lending partners reach $2 million, with financing up to 75% CLTV on primary residences for qualified borrowers.
- Purchase and Rate & Term Refinance: Both transaction types are available on primary residences and second homes. Cash-out refinances and investment properties are not eligible under the P&L program.
Is this just a stated income loan? No. A licensed, independent professional attests to the numbers, and lenders cross-check your deposits against the statement. It is verified income, documented a smarter way. Check Your Options
P&L Loan Requirements in Michigan
Guidelines vary by lender and are subject to change, but the P&L programs available through our lending partners generally look for the following:
- P&L prepared by a licensed CPA, IRS Enrolled Agent, or CTEC-registered tax preparer
- Statement covering the most recent 12 months, dated within 60 calendar days of the application date
- Minimum 700 FICO score for all P&L documentation loans; up to 75% CLTV on primary residences and 70% on second homes
- Greater than 50% ownership of the business, with about 2 years of operating history
- Purchase and rate & term refinance only (no cash-out refinances or investment properties)
- 2 months of business bank statements supporting 80% or more of the P&L's average monthly gross revenue, required only when the loan amount exceeds $1,000,000
In practice, that means most borrowers bring at least 25 percent down on a primary residence and 30 percent on a second home. Loan amounts run to $2 million, which covers nearly any residential purchase in the Michigan market.
As with every non-QM program, there is no single posted rate. Pricing depends on your credit score, down payment, and documentation type, including whether your file uses supporting bank statements or the P&L only option. Your loan officer will lay out the trade-offs before you choose a path.
Who can prepare the P&L for a mortgage?
Not you, and that is the point. Lenders accept profit and loss statements prepared by a licensed CPA, an IRS Enrolled Agent, or a CTEC-registered tax preparer, because an independent professional's signature is what gives the document its weight. The statement also needs to be fresh, dated within 60 calendar days of your application date. If you already work with an accountant, this is usually a quick request; if you keep your own books, we can explain exactly what the preparer needs to produce so there are no surprises in underwriting.
Apply for a Profit and Loss Statement Loan in Michigan
Start with a call to 800-555-2098. A licensed loan officer will confirm whether the P&L program suits your business, explain the preparer requirements, and tell you whether your file will need supporting bank statements or can go P&L only.
You can also complete the quote form above and we will reach out promptly. Either way, you will know within one conversation whether a single statement from your CPA can carry your entire income file.
Start Your P&L Loan Application
What is a P&L only loan?
A P&L only loan is a non-QM mortgage where your qualifying income comes from a profit and loss statement covering the most recent 12 months, prepared by a licensed CPA, IRS Enrolled Agent, or registered tax preparer. No tax returns are needed to document income.
Can I get a mortgage with just a profit and loss statement?
Yes, for loan amounts of $1,000,000 or less. At that size no bank statements are required at all: the file still requires a 700 minimum credit score and allows up to 75% CLTV on a primary residence. Loans over $1,000,000 add 2 months of business bank statements for verification.
Can I prepare the P&L myself?
No. Lenders require the statement to come from an independent licensed preparer, meaning a CPA, IRS Enrolled Agent, or CTEC-registered tax preparer, and it must be dated within 60 calendar days of your application date.
Do P&L loans require bank statements?
Only for loan amounts greater than $1,000,000. Those files need 2 months of business bank statements showing deposits that support 80% or more of the P&L's average monthly gross revenue. Loans of $1,000,000 or less waive the bank statement requirement entirely.
What credit score and down payment do I need for a P&L mortgage?
All P&L documentation loans require a minimum 700 FICO score. Financing goes up to 75% CLTV on primary residences (at least 25 percent down) and 70% CLTV on second homes (at least 30 percent down).
Can I use a P&L loan for a cash-out refinance or investment property?
No. The P&L program is limited to purchase and rate and term refinance transactions on primary residences and second homes. Cash-out refinances and investment properties are not eligible, though other non-QM programs such as bank statement or DSCR loans may cover those needs.
How is my income calculated on a P&L statement mortgage?
The lender takes the net income shown on your profit and loss statement and averages it over the 12 months the statement covers. That average becomes your monthly qualifying income.
Submit your information now and a licensed residential loan officer will contact you within 24 hours. If you need immediate assistance then please call us now at 800-555-2098!
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