P&L Loans in New York

Is a P&L mortgage the same as a stated income loan?

No. A stated income loan, in the old sense, accepted a borrower's income figure without verifying it, and that kind of lending largely ended after the 2008 crisis. A P&L mortgage relies on a statement backed by a qualified preparer and cross-checked against bank records. The lender is still required to make a good-faith determination that you can repay.

What is a P&L loan?

A P&L loan is a non-QM mortgage that qualifies a business owner from a profit-and-loss statement rather than tax returns. The statement is usually prepared or verified by a CPA, EA or licensed tax preparer, and lenders often ask for a few months of business bank statements to confirm the revenue. Lenders still assess your ability to repay, and all loans are subject to credit approval.

Can I refinance with a P&L loan?

Many P&L programs allow rate-and-term refinances and some allow cash-out refinances, often with tighter limits on the cash-out side. The same documentation applies: a preparer-backed P&L, supporting statements and a value estimate on the property. Programs vary by borrower, property and investor, so ask how the lender treats refinances before you order a new P&L.