Qualifying audited or unaudited YTD profit and loss statements can be now be submitted.

Freddie Mac released bulletin 2020-19 addressing documentation for self-employed borrowers. The lender must obtain an unaudited year-to-date (YTD) profit and loss statement that is signed by the Borrower and covers the most recent month preceding the Application Received Date and be dated no more than 60 calendar days prior to the Note Date -- plus two months business account statements no older than the latest two months represented on the YTD profit and loss statement. Or, obtain an audited YTD profit and loss statement. The information in the YTD profit and loss statement must cover the most recent month preceding the Application Received Date and be dated no more than 60 calendar days prior to the Note Date. The lender continues to be responsible for establishing that the Borrower’s income is stable and likely to continue at the same level as used to qualify the Borrower.

Source: Freddie Mac