Credit Score Required for Profit and Loss Loans

The Profit & Loss (P&L) Statement Only program requires a Minimum 700 FICO score. This same 700+ Score is required for all borrowers under our Horizon P&L Only program.

The minimum FICO score for both the Sharp Expanded and Sharp Premium programs is 660.

All borrowers must generally have a minimum representative score of 620.

Our Edge P&L documentation type requires a minimum FICO of 680.

When the DTI exceeds 43% for Owner Occupied (OO) and Second Homes (2nd homes), a minimum Residual Income requirement applies. For the P&L Statement Only option under our Connect, the minimum residual income requirement is $2,500.

To be eligible for a Debt-to-Income (DTI) ratio up to 55% in the Sharp Expanded program (which accepts P&L), a FICO score of 700 or greater is required.

Non-QM loans, including P&L mortgages, are considered higher risk because they cater to borrowers who do not meet traditional income verification standards, meaning lenders must charge higher interest rates and require stronger credit to compensate for these risks.

When the qualifying income is equal for all borrowers on the loan, the highest representative score will be used. However, for non-DSCR programs, the Representative Credit Score of the Primary Wage Earner is generally used to qualify.

To determine the Representative Credit Score for non-DSCR programs, lenders select the middle score when three (3) agency scores are provided.

For P&L-eligible Non-QM loans, the Interest-Only feature typically requires a higher credit score, such as a Minimum 700 FICO.