What’s the max LTV on a P/L only loan and what are the requirements?
The maximum LTV on a P&L Only loan is 85% for primary residence and second home purchase/rate-and-term transactions, available through Nations Direct Mortgage (FICO 720, loans up to $1.5M) and Mega Capital's MVP X Alternative program. Standard programs generally cap at 80%, with reduced limits based on FICO, loan amount, property type, and credit history.
Nations Direct Mortgage — Ignite P&L Only Program
Maximum LTV Matrix (Purchase / Rate-and-Term | Cash-Out)
| Loan Amount | FICO | Primary Purch/R&T | Primary Cash-Out | 2nd Home Purch/R&T | 2nd Home Cash-Out | Investment Purch/R&T | Investment Cash-Out |
|---|---|---|---|---|---|---|---|
| < $1,000,000 | 720 | 85% | 80% | 85% | 80% | 80% | 75% |
| < $1,000,000 | 700 | 80% | 75% | 80% | 75% | 75% | 75% |
| < $1,000,000 | 680 | 80% | 70% | 80% | 70% | 75% | 65% |
| < $1,000,000 | 660 | 75% | 70% | 75% | 70% | 70% | 65% |
| $1M–$1.5M | 720 | 85% | 80% | 85% | 80% | 80% | 75% |
| $1.5M–$2M | 720 | 85% | 80% | 85% | 80% | 70% | 60% |
| $2M–$3M | 720 | 75% | 65% | 75% | 65% | 65% | 60% |
Property Type LTV Caps:
- Rural: Max 80% purchase / 75% cash-out
- Warrantable Condo: Max 85% purchase / 80% cash-out
- Non-Warrantable Condo: Max 85% purchase / 80% cash-out
- 2–4 Units: Max 85% purchase / 80% cash-out
Income Documentation Requirements:
- 12-month P&L covering total business sales and expenses, prepared and signed by a verified licensed CPA, Enrolled Agent, or CTEC, and the borrower
- Borrower must be self-employed for a minimum of 2 years and be a minimum 25% owner of the business
- Licensed preparer must provide a letter confirming review and completion of most recent two years' tax returns, borrower's name, business name, and ownership percentage
- Minimum expense factor: 10% for service-related businesses, 30% for product-based businesses
- Borrower-prepared P&L or borrowers who prepare their own taxes are not permitted
DTI and Reserves:
- Max DTI: 50% (expanded DTI not available above 50%)
- DTI > 43%: Residual income of $2,500 required plus $150 for each dependent
- Reserves: 6 months for loans up to $1M; 9 months for $1M–$1.5M; 12 months for $1.5M–$3M
Products: 30-year Fixed, 30-year and 40-year Interest Only (10-year IO period, 20/30-year amortization)
Credit Events: BK/FC/SS/DI/MOD — 36 months seasoning, or 24 months with a 5% LTV reduction. No multiple credit events in 7 years.
Greenbox — Elite Full/Alt Doc Program (P&L Only — No Bank Statements)
P&L Only Overlays:
- Max DTI: 43% when using P&L Only (including 2 bank statement version)
- CTEC-prepared P&L: Max 75% LTV and max loan amount $1,500,000
- First-Time Homebuyers (FTHB): Not eligible on P&L Only (No BS)
Income Calculation:
- Net income on P&L divided by 12 or 24 months; business bank statements not required
- Preparer must be CPA, EA, or CTEC only — PTINs not permitted
- Preparer must provide a signed statement confirming they have reviewed or filed the borrower's most recent tax return
General Elite Full/Alt Doc Credit and LTV Overlays:
- Minimum FICO: 640
- Housing event seasoning: 36 months
- 1x30x12 housing history: Max 80% LTV Purchase/Rate-and-Term, Max 75% LTV Cash-Out
- Borrowers living rent-free or with incomplete housing history: Max 80% LTV, Max 43% DTI
Greenbox Elite Plus Full/Alt Doc (Stricter Tier):
- Max DTI: 43% on P&L Only; Max 50% on bank statement programs
- Housing event seasoning: 48 months
- FTHB: Not eligible
- Minimum FICO: 660
- CT, FL, IL, NJ, and NY: Max 85% LTV Purchase / 75% LTV Refi; Max loan amount $2,000,000
Mega Capital — MVP Program (CPA P&L)
Maximum LTV/CLTV: 80%
Per Mega Capital's guidelines: "80% Max LTV/CLTV"
Eligibility Requirements:
- Self-employed borrowers only; borrowers who file their own tax returns are not eligible
- Minimum 2 years self-employment in the current profession
- Business must have a minimum 2 years' existence documented via business license, letter from tax preparer, Secretary of State filing, or equivalent
- Borrower must own >= 50% of the business
- P&L must cover the most recent 12 months; P&L end date must be less than 60 days old at closing
- CPA/EA/CTEC must sign — PTINs are not acceptable
- CPA/EA/CTEC must attest they prepared the borrower's returns and are not related to or associated with the borrower
- 2 months of recent business bank statements must be provided to support P&L gross income; average bank statement deposits must be no lower than 85% of the monthly average of gross income reflected on the CPA P&L
Additional Restrictions:
- Living rent-free borrowers are not allowed
- FTHBs living rent-free: P&L doc type and gift funds are not allowed
- Qualifying income is the lower of the 12-month P&L or monthly income disclosed on the initial signed 1003
Mega Capital — MVP X Alternative Program (Exception Tier)
Applies to P&L, Bank Statements, and Asset Depletion doc types with credit events (subject to additional LLPA):
| BK/FC/SS/DI/MOD/NOD Seasoning | Max LTV/CLTV Purchase | Max LTV/CLTV Refi | Max Loan Amount | Min FICO |
|---|---|---|---|---|
| >= 48 months | Per Matrix | Per Matrix | Per Matrix | Per Matrix |
| >= 36 months | 80% | 75% | $2,500,000 | 680 |
| < 36 months | N/A | N/A | N/A | N/A |
JMAC Lending — WVOE and P&L Program
| Occupancy | FICO | Loan Amount | Purchase/R&T LTV | Cash-Out LTV |
|---|---|---|---|---|
| Primary | 660 | Up to $1,000,000 | 80% | 70% |
| Primary | 700 | Up to $1,500,000 | 75% | 75% |
| Primary | 720 | Up to $2,000,000 | 80% | 75% |
| Primary | 740 | Up to $1,000,000 | 80% | 80% |
| Primary | 740 | Up to $2,500,000 | 75% | 70% |
| Second Home | 700 | Up to $1,500,000 | 75% | 60% |
| Investment | 720 | Up to $1,500,000 | 80% | 75% |
Overlays:
- Max DTI: 50%
- LTV > 75%: Limited to 1 unit (SFR, Condo, PUD)
- IO option: Min FICO 700; FTHBs not eligible
- Non-Warrantable Condos: Purchase/R&T max 75% LTV; Cash-Out max 70% LTV
- Rural properties: Not eligible
- ITIN and Foreign Nationals: Ineligible
Greenbox CES — P&L Only (Closed-End Second Lien)
| Loan Amount | FICO | Primary P&L | 2nd Home P&L | Investment P&L |
|---|---|---|---|---|
| $150k–$350k | 740 | 80% CLTV | 75% | 80% |
| $150k–$350k | 720 | 80% | 75% | 80% |
| $150k–$350k | 700 | 75% | 75% | 75% |
| $150k–$350k | 680 | 70% | 70% | 70% |
| $150k–$350k | 660 | 60% | N/A | N/A |
| $500k–$750k | 740 | 80% | N/A | 80% |
- P&L Only (No BS): Net income divided by 12 or 24 months; CPA/EA/CTEC required; PTINs not allowed; preparer must confirm they prepared or reviewed the borrower's most recent tax return
- Minimum expense factor: Service Business 20%, Capital Intensive Business 40%
Universal P&L Only Documentation Standards (All Programs)
- Preparer credentials: CPA, EA, or CTEC universally required; PTINs not acceptable at any lender
- Self-employment minimum: 2 years across all programs
- Minimum ownership: 25% (Nations Direct, JMAC) to 50% (Mega Capital MVP)
- No tax returns or transcripts required for income qualification
- Income calculation: Net income on P&L divided by 12 or 24 months, multiplied by ownership percentage where applicable
- Expense factor minimums: Required by several lenders to ensure income reasonableness
- Business bank statements: Required by Mega Capital (2 months); not required under Greenbox and Nations Direct P&L Only (No BS) programs
- FTHBs: Ineligible on most P&L Only (No BS) programs
- Max DTI: 43% (Greenbox Elite P&L Only) or 50% (Nations Direct, JMAC); residual income requirements typically triggered when DTI exceeds 43%
