Home / Self-employed FHA loan
FHA purchase program · Florida
Self-Employed FHA Loan with a P&L Only
Write-offs keep your taxes down, and they keep the income on your tax return down too. Our FHA P&L only program qualifies you on a profit and loss statement prepared by your CPA instead of your tax returns, so you can buy with FHA’s low down payment without your returns holding you back.
What is a P&L only FHA loan?
A P&L only loan qualifies a self-employed borrower on a current profit and loss statement for the business, prepared by a CPA, instead of the net income on personal and business tax returns. Our version is an FHA loan, so it comes with FHA’s 3.5% down payment and flexible credit.
FHA for business owners, without the tax return problem
A standard FHA loan qualifies a self-employed borrower on the net income from their last two tax returns. After vehicles, equipment, a home office and depreciation, that number can be far below what the business actually earns, and the loan you need no longer fits.
Our self-employed FHA program starts with a current profit and loss statement for your business, prepared by your CPA, not your tax returns. It shows the income your business produces today, and that is what the loan is built on.
You keep everything that makes FHA popular with first-time buyers: 3.5% down, flexible credit, gift funds and seller help, now available to people who work for themselves.
Self-employed FHA loan highlights
A P&L instead of tax returns
Qualify on a profit and loss statement prepared by your CPA, rather than the net income on your returns.
Credit from 620
FHA’s flexible credit standards, starting at a 620 score for this program.
Debt-to-income up to 45%
Your total monthly debts, including the new house payment, can be up to 45% of your qualifying income.
3.5% down, and it can be a gift
The minimum FHA down payment, and 100% of it can come as a gift from family or another approved source.
Seller concessions to 6%
The seller can cover up to 6% of the price toward your closing costs and prepaid items.
Homes that qualify
Single-family homes, two to four unit properties, FHA-approved condos and double-wide manufactured homes.
Self-employed FHA requirements in Florida
- Purchase only. This program is for buying a home, not refinancing one you own.
- Self-employed borrowers only. If you are paid by an employer, see our FHA VOE program.
- Your CPA prepares the P&L. A statement you put together yourself will not work. Do not have a CPA? Tell us and we can point you to one.
- Automated approval. The file needs an approval from FHA’s automated underwriting system; it cannot be approved by hand.
- Not for renovation or assistance loans. It does not combine with an FHA 203(k) renovation loan or a down payment assistance program.
- FHA rules still apply, including FHA loan limits and mortgage insurance.
P&L only vs. tax returns vs. bank statements
| Self-employed FHA (P&L only) | Standard FHA (tax returns) | Bank statement loan | |
|---|---|---|---|
| Income is based on | CPA-prepared P&L | Net income on two years of tax returns | 12 or 24 months of deposits |
| Tax returns needed | No | Yes | No |
| Down payment | 3.5% | 3.5% | Usually 10% or more |
| Credit score | 620+ | 580+ | Varies by lender |
| Loan size | FHA loan limits | FHA loan limits | Up to $3 million |
| Property | Home you live in, 1 to 4 units | Home you live in, 1 to 4 units | Primary, second home or rental |
Other ways to qualify when you are self-employed
Bank statement loans
Qualify on 12 or 24 months of bank statements, with loan sizes up to $3 million and second homes or rentals allowed.
DSCR investor loans
Buying a rental? Qualify on the property’s rent instead of your personal income.
FHA VOE only loan
Paid by an employer with tips, bonuses or a recent raise? Your employer confirms the income.
Get your quote
A few quick taps tell us which of our FHA programs fits how you are paid. Then we send your rate, payment and cash to close for the home you have in mind.
- No credit pull to get your quote
- Purchase loans on Florida homes you will live in
- One person on our team handles your loan from quote to closing
Prefer to talk it through? Call 954-494-7288.
How are you paid?
What best describes your pay?
Do you have a CPA or tax preparer?
This program qualifies you on a profit and loss statement your CPA prepares, instead of your tax returns.
Where are you in buying a home?
The home and your credit
Your best guess is fine. You can change it later.
These programs start at a 620 credit score. Send it anyway and we will tell you what would get you there, or which other FHA option fits.
Thanks, we have it.
One member of our team will reach out with your quote, usually the same day.
Self-employed FHA loan questions
Can I get an FHA loan without tax returns if I am self-employed?
Yes, with our FHA P&L only program. Instead of the income on your tax returns, you qualify on a current profit and loss statement for your business prepared by your CPA.
Can I get an FHA loan if I am self-employed?
Yes. Our self-employed FHA program qualifies you on a profit and loss statement prepared by your CPA instead of the net income on your tax returns, so business write-offs do not shrink the loan you can get.
Does the P&L have to be prepared by a CPA?
Yes. The profit and loss statement must be prepared by a CPA. If you do not work with one yet, let us know when you get your quote and we can point you in the right direction.
What credit score do I need?
A 620 credit score or higher for this program.
How much can my debts be?
Your total monthly debt payments, including the new house payment, can be up to 45% of your qualifying monthly income.
Can I buy a duplex or fourplex?
Yes. Single-family homes and two to four unit properties qualify, along with FHA-approved condos and double-wide manufactured homes.
Is this better than a bank statement loan?
It depends on the home and your numbers. FHA offers 3.5% down and flexible credit but has loan limits and mortgage insurance. A bank statement loan allows larger loans and investment properties. We price both so you can compare.
From business owners we have helped
What Florida borrowers say after closing with On Mortgage. Five stars on Google (130 reviews) and Zillow (92 reviews).
“Caroline Da Silva from Miami Mortgage Brokers just got us approved for our first mortgage, and we would definitely work with her again after this experience! From the moment our broker connected us with Caroline, she was always several steps ahead throughout the process. We were impressed that Miami Mortgage Brokers had us clear to close a week early,...”
“Chris was outstanding throughout the entire transaction! Always accessible and was able to provide the best financing option when others could not! I would highly recommend him and hope to do more transactions with him.”
“I recently had the pleasure of working with Chris as my loan officer, and I cannot speak highly enough of his exceptional service. He guided me through every step with clarity and patience. What truly sets Chris apart is his remarkable efficiency: not only was he incredibly responsive to my inquiries, but he also expedited the loan process, resulting in the...”
Your business earns it. Let your FHA loan show it.
Answer a few quick questions and we will send your FHA quote, with one person on our team from start to finish.