Arizona P&L-only mortgages — qualify on your profit and loss statement
Some Arizona self-employed borrowers don't fit any of the standard documentation paths. Tax returns understate income because of aggressive deductions. Bank statements are messy. P&L-only programs solve a narrow problem: prove income with one signed statement, no tax returns required.
Who actually qualifies
Self-employed for 24+ months in the same business. Credit score 680+. Down payment 20% minimum (10% with limited overlays). 6 months PITI reserves in liquid assets. The P&L must come from a licensed CPA or tax preparer with a verifiable license.
The CPA isn't certifying the income is accurate. They're certifying the P&L reflects your reported business activity as you've described it to them. They sign and license-number a coversheet — most CPAs charge $200–$400 for this.
Why some borrowers use this instead of bank statements
Bank statement programs run your deposits through an expense factor and apply ratios. For a service business with low overhead, that calculation captures your real income. For businesses with heavy materials costs, capex, or significant equipment depreciation, the bank-statement math punishes you.
A P&L reflects actual margins. A roofing contractor showing $800K gross and $185K net on the P&L will qualify on $185K under this program. Bank statement math might give him $400K × 35% = $140K. The 32% income lift changes what house he can afford.
Pricing trade-off
NonQM programs price above conventional. The premium varies by documentation method, credit, LTV, reserves, and program — and changes daily. Down payment minimums vary by program tier:
| Documentation | Typical down payment minimum |
|---|---|
| Full doc (tax returns) | 5%+ (FHA/USDA), 20% (conv) |
| 24-month bank statements | 10% minimum, 20% for best pricing tier |
| 12-month bank statements | 15% minimum |
| P&L only (CPA signed) | 20% minimum (10% rare configurations) |
| Asset depletion (no income) | 25% minimum typical |
Pricing is quoted after file review, not from a generic range.
Common questions
Does the CPA need to be in Arizona?
No — any state-licensed CPA or IRS-credentialed tax preparer works.
Can I do this with a part-time accountant?
Only if they have a verifiable license number (CPA, EA, or active state tax-preparer registration). Bookkeepers without credentialing don't qualify.
Are there minimum business years required?
Yes, 24 months in the same business is the standard floor. Some lenders go to 36 months for the best pricing.
Will the lender call my CPA to verify?
Always. The verification call confirms the CPA prepared the P&L and that the figures match what's on file with them.
How Mike + Cornerstone help
I help self-employed Arizona buyers pick between bank statement, P&L only, and asset depletion programs based on which gives you the most qualifying income for your situation. Sometimes the math says go full-doc with an aggressive bank-statement add-back. Other times P&L only is the only path. I'll show you both.
Talk to Mike first Get pre-approved
No pressure, no commitment. Free 20-minute consult. Mike will look at your scenario and tell you straight whether this works for you.