Month: August 2025

Tired of the Paperwork Overload?

If you’re self-employed, getting approved for a mortgage can feel like running a marathon through a maze of tax returns, bank statements, and endless documentation. But what if you could skip most of that—and still qualify?
That’s where P&L-only loans come in. This self-employed mortgage program lets you use a simple profit and loss statement—either CPA-prepared or borrower-prepared—to verify your income. For many lenders, that means you can provide as little as 3 to 12 months of documentation instead of years’ worth of financial history.
Why a P&L Mortgage Makes Sense
A profit and loss loan can be the perfect fit if:
You don’t have two years of tax returns (or prefer not to use them)
You value speed and simplicity in the approval process
Your business income is on the rise and you want your most recent numbers to shine

Instead of getting bogged down by tax deductions that make your income look smaller on paper, a P&L mortgage focuses on your business’s actual performance—right now.
How It Works
Prepare Your P&L Statement

This can be done by your CPA or by you, depending on the lender’s requirements.


Show Recent Business Activity
Lenders may ask for 3, 6, or 12 months of P&L statements.

Get Approved Faster
With fewer hoops to jump through, the process moves more quickly compared to traditional self-employed mortgage programs.

Presenting Your Business in the Best Light
We’ll help you package your income so it tells the right story to lenders—highlighting growth, stability, and profitability. With the right presentation, your business numbers can work for you instead of against you.
FAQs on P&L Statement Loans for Self-Employed Borrowers
1. What is a P&L mortgage?
 A P&L mortgage is a type of loan that uses your profit and loss statement—either CPA-prepared or borrower-prepared—as the primary proof of income instead of traditional tax returns.

2. Who can benefit from a profit and loss loan?
 Self-employed individuals, business owners, freelancers, and entrepreneurs who have strong current income but limited tax return history can benefit the most.

3. How much documentation is required?
 It depends on the lender. Some accept just 3 months of P&L statements, while others may require up to 12 months.

4. Can I qualify without tax returns?
 Yes. One of the biggest advantages of a P&L mortgage is that it allows you to qualify without providing two years of tax returns.

5. Does my P&L need to be prepared by a CPA?
 Not always. While some lenders require a CPA-prepared statement, others accept borrower-prepared P&L statements.

6. Is the approval process faster than a traditional self-employed mortgage program?
 Generally, yes. With less paperwork to review, lenders can often approve P&L loans more quickly.

7. Will my business expenses affect my loan approval?
 Yes, but because the P&L shows your actual income performance rather than just taxable income, it may present your earnings in a more favorable light.

Bottom line: If you’re a self-employed borrower looking for a faster, simpler path to mortgage approval, a P&L-only loan could be your ticket home.
“Ready to see if a P&L-only loan works for you? Contact The Mortgage Universe today for a free consultation.”

The modern workforce is evolving, with roughly 10% of Americans already working for themselves and the percentage is rising. More people are following their passions and starting their own enterprises as a result of this change, but it also presents special difficulties when it comes to important financial decisions like purchasing a property!

Guess what? You don’t have to decide between property ownership and tax savings. A bank statement mortgage is the answer. This specialised loan calculates your income using your personal or corporate bank statements (usually 12 to 24 months) rather than your tax returns. It’s revolutionary because it enables you to obtain the home loan you are due by leveraging your actual income flow.
Let’s understand what exactly is a Bank Statement Loan?
A bank statement loan is a non-traditional mortgage product designed for borrowers who have a hard time proving their income with standard documents like W-2s and tax returns. Instead of asking for your filed tax documents, a lender will analyze your bank statements to calculate your monthly income. Reference – Investopedia
Key Takeaways:
● A bank statement loan lets you prove your income with bank statements, not tax returns or W-2s.
● This loan is ideal for the self-employed, freelancers, or anyone with a non-traditional or irregular income.
● As a non-qualified mortgage, it may have a higher interest rate and require a larger down payment.
Why Bank Statement Loans are a Game-Changer?
Bank statement loans are considered a “game-changer” primarily because they solve a major problem for a rapidly growing segment of the workforce: self-employed individuals, business owners, freelancers, and gig workers. Source – National Mortgage Professional

This isn’t just another loan option; it’s a direct solution to a major problem faced by the self-employed.
● They Overcome the Problem of Traditional Income Verification
● They Open the Door to Homeownership for a New Demographic
● Increased Flexibility in Loan Qualifications
In essence, bank statement loans are a game-changer because they represent a financial product that has adapted to the modern workforce, providing a powerful and necessary solution for those who are building wealth through entrepreneurship but don’t fit the traditional borrower mold.
Who Benefits Most from a No Tax Return Mortgage?
If your business is thriving but your tax returns are less-than-stellar, a bank statement mortgage might be perfect for you. This loan is ideal for a wide range of professionals, including:
● Entrepreneurs who run their own companies and reinvest heavily.
● Freelancers and independent contractors with variable income streams.
● 1099 Workers who don’t receive a standard W-2.
● Small Business Owners of sole proprietorships, LLCs, or partnerships.
For instance, a self-employed marketing consultant with a healthy six-figure income might use every possible tax write-off to lower their tax burden. This is a smart financial move, but it can make them look less qualified for a traditional mortgage. A bank statement loan is the perfect solution for them, as it lets their strong cash flow and savings accounts prove their ability to afford a home without the need for tax returns.
Bank Statement Loan Process Steps
A bank statement loan follows a similar procedure to a conventional mortgage, with the main distinction being the way income is confirmed. The emphasis is on a thorough examination of your bank account history rather than W-2s and tax filings.

Step 1: Pre-qualification and Application
The process starts with a consultation with a lender who specializes in non-traditional loans. You’ll discuss your finances, credit history, and the home you want to buy to get a pre-qualification. This is a quick estimate of how much you can borrow, based on an initial review. If you’re happy with the pre-qualification, you’ll then submit a full application with all of your personal and financial details.
Step 2: Documentation and Income Verification
This is the most crucial part of the process, where you prove your income without using tax forms. You will submit 12 to 24 months of bank statements—either personal, business, or a combination—which the lender will analyze to calculate your average monthly cash flow. You may also need to provide additional business documents like your business license or a letter from your CPA. Finally, you’ll supply standard paperwork such as a photo ID, proof of address, and documentation for your down payment and other assets.
Step 3: Underwriting and Risk Assessment
This is where the loan underwriter evaluates your application to assess the risk. They focus on the “three C’s”:
● Credit: They check your credit history and score to see if you have a reliable track record of paying bills on time.
● Capacity: They use the income from your bank statements to calculate your debt-to-income (DTI) ratio, confirming that you can afford the monthly loan payments.
● Collateral: For a mortgage, they order an appraisal of the property to ensure the home’s value is high enough to secure the loan.
Step 4: Final Approval and Closing
After the underwriter approves everything, you’ll get a final loan offer. This document will list the approved amount, interest rate, and other terms. Once you agree to the conditions, you’ll sign all the closing documents. The loan funds are then disbursed, and you officially close on your new home.

Key Considerations and Next Steps
While a bank statement mortgage can be a perfect fit, a few key factors will influence your eligibility:
● Credit Score: A solid credit score is still an important part of the application.
● Down Payment: These loans often require a slightly larger down payment compared to a conventional loan.
Being self-employed shouldn’t be a barrier to homeownership. If you’re ready to leverage your real income—not your write-offs—to qualify for a home loan, it’s time to explore your options.
Connect with The Mortgage Universe as we specializes in self-employed loans to see if this is the right option for you.

Welcome to The Mortgage Universe, powered by Barrett Financial Group.

We are dedicated to making your home loan journey as smooth and stress-free as possible. We understand that finding the right mortgage can be overwhelming, which is why we offer a vast range of loan options and a streamlined process designed with you in mind.

Why Choose The Mortgage Universe?

At The Mortgage Universe, our promise is an exceptional client experience built on communication, transparency, and trust. Our team is available nearly 24/7 to answer your questions and guide you every step of the way. With the backing of Barrett Financial Group, a company with over 30 years of experience and a network of over 1,700 loan officers, you can be confident that you’re in expert hands.

Our Loan Offerings

We believe that every client is unique, and your mortgage should be too. We offer a wide array of loan products to fit your specific needs, including:

• Conventional, FHA, and VA Loans: Traditional options for a variety of borrowers.
• Non-QM (Non-Qualified Mortgage) Solutions:
  • Bank Statement Loans: Ideal for self-employed individuals and business owners who want to use their real income instead of tax returns to qualify.
  • DSCR (Debt Service Coverage Ratio) Loans: Perfect for real estate investors.
  • Hard Money / Private Money Loans: Flexible and fast financing for unique situations.
  • P&L (Profit & Loss) and Asset Depletion Loans: Alternative ways to qualify based on your financial picture.
• Commercial Loans: Financing solutions for your business property needs.

Ready to Get Started?

Say goodbye to the hassle of shopping around. Our technology instantly compares top loan options so you can find the perfect fit without the headache. The process is simple:

1. Complete our two-step Quick-App (no credit pull required).
2. Receive a call, text, or email from our team to discuss your options.

Contact Sal Bossio Today

For any questions or to begin your mortgage journey, please reach out to Sal Bossio, an experienced Mortgage Professional with a passion for helping clients succeed.

• Sal Bossio – Mortgage Professional
• NMLS #1984347
• Purchase / Refi / Invest
• Cell: 516-250-1334
• Email: sbossio@barrettfinancial.com
• Website: www.themortgageuniverse.com

Mortgage Universe — where real deals get done.