A Profit and Loss (P&L) Mortgage Loan is a Non-QM loan designed for self-employed borrowers, business owners, and independent contractors who may not qualify using traditional income documentation. Instead of tax returns or W-2s, lenders use a Profit and Loss statement to verify income and determine eligibility. These loans offer flexible qualification options for home purchases, refinances, and cash-out refinances, making them ideal for borrowers with non-traditional income. While P&L loans provide an alternative path to financing, they often require higher down payments and interest rates than conventional mortgage programs.