P&L Overview:
What is a P&L Loan?
Documents you'll need
Benefits of P&L Loan
Requirements of P&L
Apply today!
What is a Bank Statement Loan?
A bank statement loan is a type of mortgage that’s designed for self-employed individuals or business owners who might not have traditional income documentation like W-2s or pay stubs. Instead of using tax returns, lenders use bank statements—usually from the last 12 to 24 months—to verify your income and ability to repay the loan.
Key Features of a Bank Statement loan
A bank statement loan is a type of mortgage that’s designed for self-employed individuals or business owners who might not have traditional income documentation like W-2s or pay stubs. Instead of using tax returns, lenders use bank statements—usually from the last 12 to 24 months—to verify your income and ability to repay the loan.
Why use a Bank Statement Loan
Flexible income verification – Qualify using 12 to 24 months of bank statements instead of tax returns or W-2s.
Perfect for self-employed borrowers – Ideal for entrepreneurs, freelancers, and business owners with non-traditional income.
Use for home purchase or refinance – Great for buying a new home, refinancing an existing mortgage, or pulling cash out of equity.
Things to consider
Flexible income verification – Qualify using 12 to 24 months of bank statements instead of tax returns or W-2s.
Perfect for self-employed borrowers – Ideal for entrepreneurs, freelancers, and business owners with non-traditional income.
Use for home purchase or refinance – Great for buying a new home, refinancing an existing mortgage, or pulling cash out of equity.
The Loan That Looks Beyond Your Tax Return
These loans are designed specifically for entrepreneurs, freelancers, and small business owners whose healthy revenues get overshadowed by tax strategies. By using your profit and loss statements instead of tax returns, lenders can see the true financial picture of your business. Whether you’re looking to purchase property, refinance existing loans, or secure working capital, a P&L loan recognizes your real income when traditional financing options might not.
It’s an ideal solution for service providers, contractors, and business owners who know their earning power exceeds what shows up on paper. Instead of being limited by tax filings, you can qualify based on your business’s actual performance.
7 Requirements for bank statement loans
1. Two Years of Bank Statements
Lenders will review 24 months of personal and/or business bank statements to verify income stability. This helps assess cash flow instead of relying solely on tax returns.
2. Business Profit & Loss Statement
A current P&L statement demonstrates your business’s revenue, expenses, and profitability. This provides lenders with a clear snapshot of your financial health.
3. Minimum 10% Down Payment
A 10% down payment reduces lender risk and shows your commitment to the investment. Some programs may allow lower down payments with stronger qualifications.
4. Adequate Cash Reserves
Reserves (typically 3-6 months of mortgage payments) prove you can handle unexpected expenses. This requirement varies based on loan type and property.
5. Credit Score
A 620 FICO score is the baseline for most bank statement loans. Higher scores can secure better rates and terms
6. DTI Below 45%
A debt-to-income ratio under 45% ensures you can manage monthly payments. Some lenders may accept higher DTIs with compensating factors.
7. Business Licenses & Legal Documents
Licenses, LLC/incorporation papers, and tax IDs validate your business’s legitimacy. These documents help streamline the underwriting process.
The Documents you will need:
The Documents
you will need:
Government-Issued ID
A valid driver’s license, passport, or state ID is required for identity verification.
Proof of Business Ownership
Submit legal documents (e.g., EIN letter, LLC filing) confirming your business ownership.
Proof of Residence
Recent utility bills, lease agreements, or mortgage statements to confirm your current address.
Business Banks Statements
Provide personal or business bank statements to verify income and cash flow, usually for 12–24 months
Credit Report
A credit report showing a minimum 620 FICO score for loan eligibility.
Interested in bank statement Loans?
No Tax Returns Required:
Ideal for self-employed borrowers, freelancers, and business owners with write-offs.Uses Bank Statements for Proof of Income:
Approves based on cash flow, not just W-2s or pay stubs.Faster & More Flexible Than Traditional Loans:
Simplified underwriting for quicker decisions.Higher Loan Amounts Possible:
Leverages real cash flow instead of taxable income.
Take the Next Step
Skip the tax returns—qualify with bank statements instead! If you’re self-employed or a business owner, our bank statement loans use your cash flow to secure financing. Fill out the form below to unlock a faster, simpler path to your real estate goals!