The Best Profit and Loss Mortgage Lenders, According to Experts

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Self-employed or have non-traditional income? A business profit and loss statement can provide a clearer snapshot of your financial health – and with the right lender, a pathway to securing a home loan without the need for traditional pay stubs or tax returns.

While tax returns may weave a tangled web of deductions and expenses, a profit and loss statement (or P&L) can cut through the clutter. Consequently, there are mortgage lenders who accept P&L statements in addition to (or even in lieu of) tax returns – a boon for borrowers with non-traditional income, says Andreis Bergeron, Head of Brokerage Operations at real estate investing company Awning.com: “The borrowers who benefit from P&L loans are typically self-employed professionals, startup founders or small business owners who can show that the financial health of their enterprises comes in the form of robust profit and loss documentation, even if their income isn’t consistent enough to fit within traditional underwriting.”

However, a P&L loan is a specialized type of loan furnished by fewer lenders, making it all the more advantageous to go into the lending process with solid footing. We've reviewed dozens of lenders, applying our methodology to round up the best profit-and-loss mortgage lenders for borrowers who lack traditional pay stub incomes.

Quick Winners List

• Best Overall: New American Funding
• Best for Non-QM Loans: Angel Oak Mortgage Solutions
• Best for Competitive Rates: Guaranteed Rate
• Best for Lower Credit: CrossCountry Mortgage
• Best for First-Time Home Buyers: North American Savings Bank
• Best Online Based: Griffin Funding

Best Overall: New American Funding

Pros:

• Offers flexible underwriting for self-employed borrowers
• Provides a wide range of loan options, including fixed and adjustable rates
• Strong customer service with dedicated loan officers
• Fast closing times, often within 30 days

Cons:

• Limited physical branches in some regions
• May require higher down payments for certain loan types

New American Funding is the best overall lender for borrowers using P&L statements thanks to its flexible underwriting and personalized service. The lender offers a Self-Employed Mortgage Program that caters specifically to freelancers, entrepreneurs and small business owners, making it easier to qualify with non-traditional income documentation. Its wide range of loan options – including FHA, VA and jumbo loans – ensures something for everyone. However, rates can sometimes be higher than competitors, and the process may feel slower due to their hands-on approach. Still, New American Funding is hard to beat for a seamless experience tailored to self-employed borrowers. The business is also backed by a stellar 4.69/5 customer review rating on Better Business Bureau and 4.7/5 rating on Trustpilot.

Best for Non-QM Loans: Angel Oak Mortgage Solutions

Pros:

• Specializes in Non-QM loans, ideal for self-employed borrowers
• Competitive rates for non-traditional income documentation
• Streamlined online application process
• Offers interest-only payment options

Cons:

• Higher fees compared to traditional lenders
• Limited availability in some states

Angel Oak Mortgage Solutions stands out in the smaller but growing market of non-QM lenders. Non-QM, short for non-qualified loans, are so named because they aren’t guaranteed by government-backed Fannie Mae and Freddie Mac (unlike conventional mortgage loans). Non-QM lenders like Angel Oak can offer more flexibility, including accepting P&L statements to secure loans for self-employed borrowers, investors and other folks with incomes that are more complex than tax returns reflect.

While flexibility is a major plus, it comes at a cost – interest rates on non-QM loans are generally higher. But for borrowers relying on P&L statements to leverage funds, non-QM lenders like Angel Oak can be a game changer.

Best for Competitive Rates: Guaranteed Rate (Rate.com) 

Pros:

• Highly competitive interest rates for P&L borrowers
• User-friendly online tools for easy rate comparisons
• Offers a variety of loan programs, including jumbo loans
• Transparent fee structure with no hidden costs

Cons:

• Strict credit requirements for the best rates
• Limited in-person support in some areas

Perhaps it is no surprise that a lender called Guaranteed Rate would snag an accolade for its competitive rates. Indeed, Chicago-based Guaranteed Rate, also known by its domain Rate.com, excels with its transparent pricing and user-friendly online platform, making it easy to compare mortgage rates and lock in a low one. Rate.com also accepts P&L statements for self-employed borrowers, though they may require additional documentation, unlike some of the more flexible lenders on this list.

Of course, there are some downsides: Reviews say customer service can be a bit hit-or-miss, and the online process might feel a little impersonal for some. But as far as rate-shopping and a streamlined experience go, Guaranteed Rate is a solid contender and boasts an A+ Better Business Bureau rating for added peace of mind.

Best for Lower Credit: CrossCountry Mortgage

Pros:

• Accepts lower credit scores for P&L borrowers
• Flexible underwriting for non-traditional income
• Wide range of loan options, including FHA and VA loans
• Strong local presence with personalized service

Cons:

• Higher interest rates for lower credit scores
• Slower processing times compared to online lenders

You may have used credit to fund a business (or simply been less financially prudent in the past) and subsequently have a less-than-favorable credit score. So if you’re also an aspiring homeowner or real estate investor, try not to despair too much. In reality, a lower credit score doesn’t condemn you to being a non-desirable loan candidate. Among the field of lenders who accept borrowers with lower credit scores, CrossCountry Mortgage (CCM) stands out as one of the best, accepting scores as low as 580 for some government-backed loans.

But more important to the borrowers looking for a lender who accepts P&L statements, CCM is also friendly to the self-employed and accepts P&L statements and bank statements as proof of income. Just note that while their rates are competitive, CCM’s fees can be higher, and the approval process may take longer than average. However, CCM offers a much-welcomed path to homeownership for borrowers with less-than-perfect credit.

Best for First-Time Home Buyers: North American Savings Bank

Pros:

• Offers first-time homebuyer programs with low down payments
• Flexible P&L underwriting for self-employed borrowers
• Competitive rates and no PMI on certain loans
• Excellent customer service with educational resources

Cons:

• Limited availability outside the Midwest
• Fewer digital tools compared to online lenders 

First-time home buyers need a lender that’s patient and supportive – an institution that’s especially willing to guide a newcomer through the process. North American Savings Bank (NASB) earns its title as the best for first-time homebuyers thanks to its no-closing-cost mortgages and flexible underwriting, including its acceptance of P&L statements for self-employed borrowers, in addition to its variety of loan programs, including FHA and VA loans.

However, availability is limited to certain states, and the bank’s online tools aren’t as robust as some competitors. Overall, NASB is a solid choice for first-timers seeking a fairly seamless experience.

Best Online Based: Griffin Funding

Pros:

• Fully digital application process for convenience
• Specializes in P&L loans for self-employed borrowers
• Competitive rates and fast pre-approval times
• Transparent fees with no prepayment penalties

Cons:

• No physical branches for in-person support
• Limited loan options compared to larger lenders

Griffin Funding is an excellent online-only lender for tech-savvy borrowers with zero qualms about using a web-based lender. They specialize in bank statement and P&L statement loans, making them a great option for self-employed borrowers. The online platform is intuitive, and customer service is well-regarded. On the flip side, their rates can be higher than average, and Griffin doesn’t furnish quite as many loan options as some of the other online-based banking and lending platforms, like SoFi Mortgage. However, Griffin Funding is a clear winner for a service specializing in self-employed people seeking convenience and a seamless online process.

What is a Profit and Loss Mortgage Lender?

Sief Khafagi, co-founder of real estate investment company Techvestor, explains the basics of a P&L loan: “A profit and loss mortgage lender is a lending institution that lends money based on a detailed profit and loss statement given to them rather than standard documentation of income, thus meaning that the borrower's evaluation is based on revenue trends, cost of operations, and earnings figures,” he says. “These types of loans tend to suit borrowers who are self-employed or have variable income situations.”

Conventional lending relies on tax returns; however, for self-employed individuals or small business owners whose taxable income may be lower due to deductions, a P&L statement can verify that actual cash flow is strong: “Some gig economy professionals learn that presenting detailed financial statements paints a better picture of their earning potential than a standard set of W-2 forms,” notes Bergeron.

How to Choose a Profit and Loss Mortgage Lender

If you're self-employed or have non-traditional income, working with a P&L mortgage lender is an excellent option to secure a home loan. However, it's important to compare terms and ensure you understand all of the costs and risks involved, Khafagi says: “Knowing how your lender treats revenue and expenses for underwriting purposes – the way they treat ‘income’ and ‘expenses’ from non-traditional sources – is crucial when choosing a profit and loss lender,” he says. 

Choosing the right P&L mortgage lender can make all the difference in securing a home loan that fits your unique financial situation, so ask the right questions: “You'll want to ask them how they handle seasonal fluctuations in revenue, how transparent their fee structures are, and if they offer digital tools to simplify the paperwork process,” Khafagi says.

By asking the right questions and having your income documentation organized and ready, you’ll set yourself up for a smoother loan process from start to finish.

Why You Should Trust Us

At Benzinga, we aim to offer trustworthy financial insights and guidance to simplify complex financial topics, such as borrowing using non-traditional income verification. We’ve collaborated with industry experts to ensure accuracy and reliability and conducted thorough evaluations of the featured P&L mortgage lenders. The author, Emma Witman, is an experienced journalist and financial writer with over five years of expertise in helping consumers make informed decisions across various topics, including technology, sleep and fitness.

Methodology 

We conducted an in-depth evaluation of over 100 lenders and brokers specializing in non-traditional income verification to identify the best profit and loss mortgage lenders. Our analysis focused on lenders offering tailored solutions for self-employed individuals and business owners, prioritizing those with competitive interest rates, flexible underwriting criteria, and efficient closing processes. We also highlighted lenders with strong customer satisfaction ratings, transparent fee structures and robust digital tools – such as online applications and mobile platforms – to simplify the borrowing experience. Additionally, we considered the availability of educational resources and personalized support to help borrowers navigate their options. For a detailed breakdown of our methodology, you can unpack our full approach.

FAQ

Sources

Consumer Financial Protection Bureau (CFPB). “What are Fannie Mae and Freddie Mac?” Accessed Mar. 16, 2025. https://www.consumerfinance.gov/ask-cfpb/what-are-fannie-mae-and-freddie-mac-en-1959/

Interview with Sief Khafagi, founder at techvestor.com, via email on Mar. 10, 2025.

Interview with Andreis Bergeron, VP of Sales, Redawning.com, via email on Mar. 7, 2025.

Online lender information sourced from company websites, including Angel Oak Mortgage Solutions, CrossCountry Mortgage, Guaranteed Rate (Rate.com), Griffin Funding, New American Funding and North American Savings Bank.

Review data sourced from Trustpilot and the Better Business Bureau (BBB).