A CPA-prepared P&L statement is the professional record of what a self-employed business earns after expenses — not the tax-minimized version on a 1040. No tax returns. No 4506-C. Up to $2.5M. All occupancy types. 660 FICO.
Program at a Glance
BFF's P&L Statement Loan is one of five Alt-Doc pathways in the Exp-Doc matrix (alongside Bank Statements, 1099, Asset Utilization, and Full Doc Non-QM). It's specifically designed for self-employed borrowers who have a licensed professional preparing their financials — whether a CPA, Enrolled Agent, CTEC preparer, Tax Attorney, or PTIN-licensed preparer. All occupancy types are eligible: primary, second home, and investment.
Key parameters from the BFF P&L Statement Matrix. Download the PDF for complete guidelines before pricing any P&L Statement scenario.
| Parameter | Requirement |
|---|---|
| Max Loan | $2,500,000 |
| Max LTV — Purchase | 80% standard · 85% at 720+ FICO (primary residence only) |
| Max LTV — R&T Refi | 75% |
| Max LTV — Cash-Out | 70% · Cash-out proceeds may be used toward reserve requirements |
| Min FICO | 660 (all occupancy types) |
| Occupancy | Primary residence · Second home · Investment property |
| P&L Term | 24-month preferred · 12-month accepted |
| Eligible Preparers | CPA · Enrolled Agent (EA) · CTEC · Tax Attorney · PTIN preparer (with conditions) |
| P&L Freshness | Must be dated within 90 days of anticipated closing date — older P&Ls must be updated |
| Income Method | Net business income from P&L — no tax returns, no 4506-C required |
| Gift Funds | Allowed |
| Cash-Out to Reserves | Cash-out proceeds may be applied toward post-closing reserve requirements |
Business owners whose tax returns show low net income due to legitimate deductions, depreciation, and write-offs — but whose business actually generates strong cash flow documented on a P&L.
Business owners who already have a CPA or EA preparing their financials annually. The P&L is the natural documentation choice — the preparer relationship is already established.
A P&L shows net income after real expenses — which is advantageous for businesses with genuinely low overhead. Bank statements apply an assumed expense factor; P&L uses actual documented expenses.
All three occupancy types are eligible. Self-employed real estate investors who use P&L documentation for their primary residence can use the same approach for investment property purchases.
Unique feature: cash-out proceeds can count toward post-closing reserve requirements. A borrower who needs equity access and reserves at the same time can address both with one transaction.
Strong-credit self-employed buyers can access 85% LTV on primary residence purchases — higher than the standard 80% maximum. An extra 5 LTV points that can meaningfully reduce the down payment required.
BFF accepts P&L statements from five preparer types: CPA (Certified Public Accountant), EA (IRS Enrolled Agent), CTEC (California Tax Education Council licensee), Tax Attorney, and PTIN-licensed preparer (with conditions). CPAs and EAs are the most straightforward submissions. CTEC applies to California. PTIN holders are subject to additional conditions — confirm with your AE before collecting a PTIN-prepared P&L. Borrower-prepared P&Ls are never accepted regardless of any other circumstances.
The P&L statement must be dated within 90 days of the anticipated closing date. A P&L prepared 91 days before closing requires an updated version before the loan can close. This is one of the most common sources of last-minute delays on P&L loans. Order the P&L as close to closing as practical, communicate the 90-day window to the CPA at the start of the process, and build schedule buffer in case closing is delayed.
Both are accepted — use whichever produces the stronger qualifying income for the specific borrower. A 24-month P&L averages two years of net income, which demonstrates stability and is generally preferred. If the business has grown significantly and recent income is much higher than the prior year, a 12-month P&L may produce higher qualifying income by using only the most recent year. When possible, get both prepared and calculate the qualifying income under each scenario.
Bank statement loans qualify income based on deposits into bank accounts over 12 or 24 months — typically applying a standard expense factor (e.g., 50%) to calculate net income. A P&L loan uses the actual documented net income on the CPA-prepared statement, which may be higher or lower than the bank statement income depending on how the business operates. P&L is often stronger for businesses with genuinely low expenses. Bank statements are often stronger for high-revenue, high-expense businesses where the expense factor understates actual cash flow. Run both when the borrower has options.
Yes. BFF allows cash-out proceeds from a P&L refinance to be applied toward post-closing reserve requirements. This is particularly useful for self-employed borrowers who need equity access and simultaneously need to demonstrate reserves. Rather than tapping savings for reserves and taking cash-out separately, a single cash-out refi can address both needs.
BFF P&L Statement Matrix — Rev. Feb 2026
P&L must be dated within 90 days of closing. A stale P&L is the most common delay on these files. Tell the CPA the deadline upfront.
For any self-employed borrower, compare P&L, bank statements, and 1099 income side by side. The strongest qualifying income path isn't always obvious without running all three.
Price it in the Quick Pricer, download the matrix, or call your AE. We Deliver.
