P&L statement (Profit and Loss)
A business income statement showing revenue minus expenses over a period. For mortgage purposes, a P&L must be prepared and signed by a licensed CPA to be accepted by most non-QM lenders. A year-to-date P&L covers January 1 through the month of application and is often required alongside prior-year returns.
How does this affect your loan? Estimate self-employed qualifying income with the DTI calculator, or read the self-employed mortgage guide.
Related terms
- Business bank statements — 12–24 months of statements from a business checking or savings account, used as the primary income document fo…
- Expense factor / expense ratio — The percentage of bank deposits a lender treats as business expenses when calculating qualifying income on a b…
- Letter of explanation (LOE) — A written statement from the borrower explaining an unusual item in the application: a large deposit, a credit…
- YTD P&L — A profit-and-loss statement covering the current year to date — from January 1 through the application month.…
- Verification of Employment (VOE) — A document or direct lender contact that confirms your employment status, position, and income. For self-emplo…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.