Income types
P&L only loans.
Self-employed borrowers with a profit and loss statement prepared by a tax professional.
8 cakes take P&L only.
Every cake with a published matrix for this income type, largest loan first. Open one for its limits and matrix.
What the file needs.
Net income from the P&L, divided by the months it covers, times the borrower’s ownership share. Depreciation, depletion, and amortization may be added back.
- A 12 or 24 month P&L signed by a CPA, EA, CTEC preparer, PTIN holder, or tax attorney who is not employed by the originator
- The P&L ends no more than 60 days before application and is no more than 120 days old at closing
- At least 25% ownership, one year in the business, and two years in the line of work
- Where the matrix pairs the P&L with bank statements, deposits must support the P&L revenue within 25%
From the Non-QM guidelines, version 5.0, section 6.3, 6.4. The guidelines and matrix govern every file.
Read the guidelines (PDF, opens in a new tab)Check a scenario.
Move the score, LTV, and loan amount. The cakes that take it line up.
Other ways to document income
Have one of these files?
Talk it through with an account executive at (833) 717-0401 before you submit, or apply to become a partner and submit in TPO Connect.
Already approved? Log in to TPO Connect (opens in a new tab)
