Profit and Loss Only and Asset-Depletion Loans in Georgia

Bank statement loans solve one version of the self-employed problem. They do not solve all of them. Two other alternative-documentation paths exist, and each serves a borrower the others cannot.

A profit-and-loss-only loan qualifies a self-employed borrower using a CPA-prepared profit and loss statement instead of tax returns or bank statements. An asset-depletion loan qualifies a borrower with substantial liquid assets by converting those assets into an assumed monthly income stream, with no employment income required at all. Both are non-QM programs offered almost entirely through wholesale lenders.

Here is who each one is actually for.

What is a profit and loss only mortgage?

What it is. A licensed tax professional — CPA, enrolled agent, or in some programs a licensed tax preparer — prepares a profit and loss statement for your business covering a defined period, typically twelve or twenty-four months. The lender qualifies you on the net income shown on that statement.

What makes it different from a bank statement loan. A bank statement loan reads deposits and applies an assumed expense factor. A P&L-only loan reads a prepared financial statement showing actual revenue and actual expenses. No deposit analysis, no expense assumption.

Who it fits:

• Businesses whose deposit activity does not cleanly reflect revenue — heavy transfer activity, multiple accounts, payment processors holding funds
• Businesses where the assumed expense factor on a bank statement program is far off from reality
• Borrowers whose CPA already maintains clean interim financials
• Cash-intensive businesses where deposits understate revenue

What lenders require beyond the P&L:

• The preparer must be independent — you cannot prepare your own
• Preparer license verification
• Business existence verification, typically two years
• Some programs require limited bank statements to corroborate the P&L
• Credit and reserve requirements generally stricter than conventional

Preparer independence is where these files fail. Some borrowers assume their bookkeeper qualifies, or that a statement they generated in accounting software and had reviewed will pass. Programs specify who may prepare the statement and require license verification. Confirm your preparer meets the specific program’s definition before paying for the statement.

The trade: you are relying on a document with no third-party verification behind it, so lenders price and structure these conservatively — generally more equity, stricter credit, and required reserves.

What is an asset depletion loan?

What it is. Also called asset-based or asset-utilization lending. Instead of employment income, the lender converts your liquid assets into an assumed monthly income figure by dividing eligible assets across a defined number of months.

The concept in outline: eligible assets, sometimes reduced by a discount factor, divided by a program-defined term, produces monthly qualifying income. Programs differ substantially on which assets count, what discount applies, and what term is used.

Who it fits:

• Retirees with substantial savings but limited reportable income
• Borrowers between ventures with significant liquidity
• Borrowers whose wealth sits in investments rather than salary
• Business owners who took a low-income year but hold reserves

What typically counts:

• Checking, savings, and money market balances
• Brokerage accounts
• Retirement accounts, often at a reduced percentage and sometimes only if you are of an age to access them without penalty

What typically does not count:

• Assets already used for the down payment and closing costs
• Equity in other real estate
• Business assets needed for operations
• Non-liquid holdings

The trade: the equity requirement is generally higher, the asset documentation is extensive, and assets must be seasoned and sourced.

The most common misunderstanding is double-counting. Money used for your down payment and closing costs is spent — it cannot also generate qualifying income. Borrowers frequently calculate their qualification using the gross balance and are surprised when the lender nets out the cash to close first.

How is a P&L-only loan different from a bank statement loan?

	Bank statement	P&L-only	Asset depletion
Qualifies on	Deposits over 12–24 months	CPA-prepared P&L	Liquid assets converted to income
Employment income required	Yes	Yes	No
Tax returns required	No	No	No
Key document	Bank statements	Independent P&L	Asset statements
Main failure point	Overdraft patterns; commingled accounts	Preparer independence	Double-counting down payment funds
Best for	Strong deposits, heavy deductions	Deposits that misrepresent revenue	Substantial assets, limited income

Can I prepare my own profit and loss statement for a mortgage?

They are non-QM. These loans fall outside the Qualified Mortgage standards governing conventional, FHA, VA, and USDA lending. That is a structural fact, not a warning, but it has consequences:

• Pricing differs from full-documentation loans, reflecting different risk characteristics
• Equity requirements are generally higher
• Credit requirements are generally stricter
• Reserve requirements are common
• Guidelines vary widely between lenders — there is no Fannie Mae equivalent setting a common standard

That last point is the practical case for a broker on these files. Georgia Platinum Mortgage is a mortgage broker, and with non-QM there is no single national rulebook to compare against. The same borrower can produce materially different qualifying income depending on which lender’s program the file is submitted to.

What assets count for an asset depletion loan?

If you qualify conventionally, use the conventional loan. This is not a close call. Conventional financing generally carries better pricing, lower equity requirements, and more flexibility. Alternative documentation exists to solve a mismatch between your real financial capacity and what standard documentation shows. If there is no mismatch, there is no reason to pay for the solution.

Ask for a conventional pre-approval first. Then compare. A loan originator who will not run both is not giving you enough information to decide.

Georgia specifics

The closing works identically. Georgia requires an attorney-conducted closing, and intangible recording tax applies at $1.50 per $500 of the loan amount, capped at $25,000 (Georgia Department of Revenue, 2026). Non-QM status changes how you qualify, not how you close.

Expect a longer underwriting timeline. Manual review of financial statements or asset documentation takes more time than automated underwriting on a conventional file.

How to prepare

1. Get a conventional pre-approval first, so you know what you are comparing against.
2. For P&L-only: confirm your preparer meets the program’s independence and licensing definition before paying for a statement.
3. For asset depletion: calculate your assets net of down payment and closing costs.
4. Season and source your assets. Large recent deposits require explanation regardless of program.
5. Ask what happens later. Many borrowers use these as a bridge and refinance into conventional financing once documentation supports it. Weigh the refinance cost — including Georgia’s intangible tax again — before assuming that path is free.

Contact us today if standard documentation does not describe your situation accurately. Georgia Platinum Mortgage is a mortgage broker — we will run the conventional math first, then compare alternative documentation programs across our lender panel, and tell you plainly if conventional is the better answer.

Frequently asked questions

Who can prepare the P&L for a P&L-only loan?

An independent licensed tax professional, most commonly a CPA or enrolled agent, though some programs accept a licensed tax preparer. The lender verifies the license. You cannot prepare it yourself, and a bookkeeper may not qualify depending on the program’s definition.

Do P&L-only loans require any bank statements?

Some programs require a limited number of statements to corroborate the P&L; others do not. It varies by lender. Because there is no agency standard for non-QM lending, the documentation requirement is set program by program.

Can retirees use an asset depletion loan?

Yes — retirees with substantial savings and limited reportable income are among the most common users. Retirement accounts often count at a reduced percentage, and some programs count them only when the borrower is of an age to access funds without penalty.

Can I use my 401(k) for an asset depletion loan?

Often, at a reduced percentage rather than the full balance, and subject to the program’s rules about penalty-free access. The account is not liquidated — it is used as the basis for calculating an assumed income stream.

Why can’t I count the money I’m using for my down payment?

Because it will be spent at closing. Funds used for down payment and closing costs cannot also generate qualifying income. Calculate your eligible assets net of cash to close, not from the gross balance.

Are these loans more expensive than conventional?

They are non-QM loans with different risk characteristics and are priced accordingly, and they generally require more equity. Pricing depends on the lender, program, credit profile, and market conditions. The only meaningful comparison is a side-by-side on your actual file against a conventional pre-approval.

Can I refinance out of a P&L-only or asset depletion loan later?

Yes. Many borrowers use them as a bridge and refinance into conventional financing once tax returns or income history support it. Factor the refinance cost, including Georgia’s intangible recording tax, into that plan before assuming it is free.

Should I use one of these instead of a conventional loan?

Not if you qualify conventionally. Conventional financing generally offers better pricing, lower equity requirements, and more flexibility. These programs exist to solve a mismatch between real financial capacity and what standard documentation shows. Get a conventional pre-approval first and compare.

Written by Wrx Kimura, Mortgage Loan Originator, NMLS #2759723 Wrx Kimura originates residential mortgages for Georgia Platinum Mortgage, a licensed mortgage broker that compares loan options across a wide panel of wholesale lenders for buyers in Georgia, Alabama, Tennessee, Florida, and Texas.

Georgia Platinum Mortgage — NMLS #144366

Last reviewed: August 2026

Georgia Platinum Mortgage is a mortgage broker and does not fund loans. This article is educational and is not a loan commitment, an offer of credit, a quote of terms, tax advice, or investment advice. Non-QM program guidelines vary by lender and change frequently; confirm current requirements before relying on this article. Equal Housing Opportunity.