# P&L Loans in Tennessee: Qualify on a Profit and Loss Statement

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Page title: P&L Statement Loans in Tennessee | Valor Mortgage

Who has to prepare the P&L, how lenders turn it into income, and the down payment and credit P&L programs require.

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By [Christopher Armantrout](https://valor.mortgage/about-us/), Licensed Mortgage Loan Originator · NMLS [#1210804](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)
Last updated October 27, 2026
Checked against published 2026 non-QM investor guidelines · October 2026

Quick answer

A P&L loan lets a self-employed borrower qualify on a 12- or 24-month profit and loss statement prepared and signed by a CPA, enrolled agent or licensed tax preparer, instead of tax returns. Lenders typically cap it at 80% loan-to-value (20% down), with a minimum credit score of 660 to 720.

Most programs also ask for two or three recent months of business bank statements that support the P&L’s revenue.

Program ranges on this page were compiled in October 2026 from published 2026 guidelines of national non-QM investors (listed in the sources table). P&L programs are set by each lender, not a government agency. Program terms and eligibility are subject to lender guidelines and may change.

At a glance: P&L loans in Tennessee

- **Who prepares it:** a CPA, EA or CTEC preparer who also filed your latest tax return
- **Period:** 12 or 24 months, dated within 90 days of closing
- **Down payment:** usually 20%+ (80% maximum LTV)
- **Credit:** 660 to 720 minimum
- **Bank statements:** 2–3 months, deposits within about 10% of P&L revenue
- **Business:** at least 2 years old; 50%+ ownership at some lenders

## Who has to prepare the P&L?

A third party with a license the lender can verify: a certified public accountant (CPA), an IRS enrolled agent (EA), or a tax preparer registered with the California Tax Education Council (CTEC). One 2026 guide also requires that the preparer filed your most recent tax return and isn’t related to you. You sign it too. A P&L you prepare yourself doesn’t qualify on these programs.

- **Period:** the most recent 12 months (24 at some lenders), dated within 90 days of closing.
- **Income:** net income × your ownership percentage ÷ 12 (or 24).
- **Supporting statements:** usually the 2 or 3 most recent months of business bank statements. One guide requires the deposits to be no more than 10% below the P&L’s revenue for the same period.

## How much down payment and credit do you need for a P&L loan?

| Requirement | Common range in 2026 guidelines |
|---|---|
| Maximum loan-to-value | 70%–80% (20%–30% down), lower than bank statement programs |
| Minimum credit score | 660 to 720, with the 80% tier usually at the top of that range |
| Maximum loan amount | About $2.5 million |
| Self-employment | 2 years; the business must hold an active license where one is required |
| Ownership | At least 50% at some lenders |
| Credit events | Commonly 36 months since a bankruptcy, foreclosure or short sale |
| First-time homebuyers | Not allowed on some P&L-only programs |

Sources: MAXEX Non-QM Program Guide v13 and Select 5 Guide v9 (2026); LoanStream Non-QM Matrix (Aug 5, 2026); A&D Mortgage Product Matrix (Aug 31, 2026). Ranges vary by lender. Program terms and eligibility are subject to lender guidelines and may change.

## Who is a P&L loan a good fit for?

- Business owners whose recent year is much stronger than the last tax return, such as a business that grew quickly.
- Owners who already work with a CPA or EA who can prepare and sign the statement.
- Borrowers whose deposits are hard to read on a [bank statement loan](https://valor.mortgage/bank-statement-loans/), for example because of large pass-through payments to subcontractors.

Some lenders exclude certain business types, such as real estate investors and flippers or day traders. Because this is a consumer mortgage, the lender must still document your ability to repay under the federal [ability-to-repay rule](https://www.consumerfinance.gov/ask-cfpb/what-is-the-ability-to-repay-rule-en-1787/).

## How does a P&L loan compare with a bank statement loan?

| Feature | P&L loan | Bank statement loan |
|---|---|---|
| Income comes from | Net income on a preparer-signed P&L | Deposits, less an expense factor |
| Statements needed | Usually 2–3 months | 12 or 24 months |
| Maximum LTV | Usually 70%–80% | Up to 85%–90% |
| Typical minimum credit | 660–720 | 600–700 |
| Third party needed | CPA, EA or CTEC preparer | Only if you use a custom expense factor |

Comparative costs depend on rate, loan amount, credit, lender pricing and how long you keep the loan. Program terms are subject to lender guidelines and may change.

## What does a P&L loan look like on a $450,000 home in Robertson County?

| Item | Amount |
|---|---|
| Net income on the 12-month P&L | $180,000 |
| Ownership | 100% |
| Qualifying monthly income | $180,000 ÷ 12 = $15,000 |
| Purchase price | $450,000 |
| Down payment at 80% LTV | $90,000 |
| Loan amount | $360,000 |

Illustrative example only. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Closing costs are not included. Subject to lender guidelines and may change.

To try your own numbers, including the property tax for a specific Tennessee address, use the [Tennessee mortgage calculator](https://valor.mortgage/mortgage-calculator/).

## What are the catches with P&L loans?

- You need a bigger down payment than on most other self-employed programs.
- Your preparer’s license is verified, and a P&L that doesn’t match your deposits can sink the file.
- Rates and fees are generally higher than on a conventional loan.
- Fewer lenders offer P&L-only financing than bank statement financing, so terms vary more.

## P&L loan FAQ

### Can you use a P&L you prepared yourself?

Not on P&L-only programs. Lenders require a CPA, enrolled agent or CTEC-registered preparer to prepare and sign it, and some require that preparer to have filed your latest tax return. Some bank statement programs accept a borrower-prepared P&L only as supporting paperwork.

### Do you need bank statements for a P&L loan?

Usually a few. Most 2026 programs ask for the two or three most recent months of business bank statements to support the P&L, and one requires deposits within 10% of the P&L’s revenue. A few true P&L-only programs exist with tighter limits. Terms are subject to lender guidelines.

### How much do you need to put down on a P&L loan?

Usually at least 20%, because most programs cap the loan at 80% of the value, and some cap P&L-only loans at 70%. A higher credit score generally gets the higher loan-to-value. Program terms and eligibility are subject to lender guidelines and may change.

### What credit score do you need for a P&L loan?

Published 2026 guidelines start between 660 and 720, with the 80% loan-to-value tier usually needing the higher end. Program terms and eligibility are subject to lender guidelines and may change.

## Where these figures come from

| Figure | Source | As of |
|---|---|---|
| Preparer rules, 90-day dating, bank-statement support, ownership, LTV | [MAXEX Non-QM Program Guide v13](https://www.maxex.com/wp-content/uploads/2026/05/Non-QM-Program-Guide-v13.pdf); [Select 5 Guide v9](https://www.maxex.com/wp-content/uploads/2026/05/Non-QM-Select-5-Program-Guide-v9.pdf) | Jan 26, 2026; Mar 3, 2026 |
| P&L-only LTV, credit, loan size, business-type exclusions | [LoanStream Wholesale Non-QM Matrix](https://loanstreamwholesale.com/wp-content/uploads/2026/10/LSM-Non-QM-Matrix-08.05.26.pdf) | Effective Aug 5, 2026 |
| P&L maximum CLTV and loan amount | [A&D Mortgage Product Matrix](https://admortgage.com/wp-content/uploads/Product_Matrix_Aug_31_2026.pdf) | Aug 31, 2026 |
| Ability-to-repay rule | [CFPB, ability-to-repay rule](https://www.consumerfinance.gov/ask-cfpb/what-is-the-ability-to-repay-rule-en-1787/) | Retrieved Oct 27, 2026 |

## Related guides

- [Bank statement loans](https://valor.mortgage/bank-statement-loans/), [non-QM loans](https://valor.mortgage/non-qm-loans/) and [DSCR loans](https://valor.mortgage/dscr-loans/).
- [Conventional loans](https://valor.mortgage/conventional-loans/), if your tax returns qualify.
- Metro Nashville borrowers: how I work as a [Nashville mortgage broker](https://valor.mortgage/nashville-mortgage-broker/).
- [About Christopher Armantrout](https://valor.mortgage/about-us/), the licensed originator who wrote this page.

[Call me at (615) 671-9178](tel:+16156719178). Have your CPA or tax preparer’s name handy; I’ll tell you whether a P&L, bank statement or conventional loan gets you the most for the least.

If it’s after hours, [grab a time on my calendar](https://valor.mortgage/book-your-appointment/), or [start an application](https://valor.mortgage/purchase/) and I’ll review it and reach out with a plan.

About the author

[Christopher Armantrout](https://valor.mortgage/about-us/)

Owner & Senior Loan Officer, Valor Mortgage NMLS #1210804

Christopher is a licensed Mortgage Loan Originator in the State of Tennessee and has been originating home loans since 2015. He founded Valor Mortgage in Springfield in 2019 and works with veterans, first-time buyers, self-employed borrowers, and families across Robertson County and Middle Tennessee.

[More about Christopher](https://valor.mortgage/about-us/) [Verify this license on NMLS](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)

**Valor Mortgage, LLC** · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · [NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/INDIVIDUAL/1210804)

The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.

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## Contact Valor Mortgage

- Christopher Armantrout, Senior Loan Officer, NMLS #1210804
- Phone: [(615) 671-9178](tel:+16156719178)
- Email: [christopher@valor.mortgage](mailto:christopher@valor.mortgage)
- Office: 724 S Main St, Springfield, TN 37172
- [Book an appointment](https://valor.mortgage/book-your-appointment/) · [Apply online](https://valor.mortgage/home-application/) · [Contact page](https://valor.mortgage/contact-us/)

Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 ([NMLS Consumer Access](https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/1249911)). Christopher Armantrout, Loan Officer, NMLS #1210804. Licensed in Tennessee. Equal Housing Opportunity.

All loan programs, rates, terms, and conditions are subject to change without notice. Loan approval is based on borrower qualification, credit review, income verification, and property eligibility. Not all applicants will qualify. Not a commitment to lend.