My tax returns show low income because of deductions. Am I stuck?

Deductions can affect income calculated from tax returns. A bank-statement program may be another option, but lenders still apply expense factors and other requirements. Lee can review your documentation to see which programs may fit.

What's a bank statement loan, exactly?

A bank-statement program uses eligible deposits and documented expenses or a lender-defined expense factor to calculate qualifying income. The statement period, accounts, adjustments, and other requirements vary. It still requires financial documentation and an underwriting review.

Do I need to be self-employed for 2 full years?

Usually yes, 2 years is the standard requirement. Shorter histories can work if you've been in the same field as a W-2 employee before going self-employed, or with offsetting factors (large down payment, strong reserves, 740+ credit). Less than 1 year is very tough; 1-2 years is workable on some programs.

Are rates higher for self-employed borrowers?

Pricing depends on the program and your overall financial profile. Lee can compare eligible conventional and alternative-documentation options, including their rates and fees.

Can I qualify through my LLC or S-corp?

Yes. We look at distributions, K-1 income, and/or business bank statements depending on your structure. S-corp owners often have the most optimization room, we'll walk you through which income lines count and how to document them.

What about asset-depletion loans?

Some programs calculate qualifying income from eligible assets. The lender sets which assets count, any adjustments, and the calculation period. You'll still need to document assets and meet credit, reserve, and other requirements.

Can I use this for an investment property?

Yes. Bank statement programs work on investment properties too. Self-employed investors also frequently use DSCR loans, which qualify on the property's rental income rather than personal income, see our investment property page for that path.

Self-Employed Loan

Self-Employed Mortgage Loans

Mortgages that qualify on your actual income, not the strict W-2 playbook.

Self-employed? Lee can compare programs that use tax returns, bank statements, 1099 income, or assets.

Ask about preapproval Full loan application

Start with a conversation. The full application opens in ARIVE and is the place for financial details and documents.

About Self-Employed Mortgage Loans

Self-employed income can take more documentation to explain. Lee can compare conventional programs using tax returns with programs that consider bank statements, 1099 income, or qualifying assets. Each lender has its own documentation, expense, credit, and reserve requirements. The aim is to find an eligible option and understand its cost.

Key benefits

Bank statement programs

Some programs use business or personal bank statements to calculate qualifying income. The lender sets the statement period, eligible deposits, and expense adjustments. Total deposits aren't automatically treated as income.

1099-only programs

Some programs consider documented 1099 income and bank statements. The lender determines which records and expense adjustments are needed.

Asset-depletion loans

High-net-worth borrowers without traditional income can qualify using liquid assets, retirement accounts, investment accounts, cash, divided across the loan term to create a qualifying income figure.

Conventional when it fits

When documented income meets conventional guidelines, include that option in the comparison. Rates, fees, and required documentation vary across programs.

The process

Discuss your income, documents, and possible loan programs
Gather docs appropriate to that path (not all of them)
Shop your file across self-employed-friendly wholesale lenders
Underwriting, including any additional income documentation the lender requests

Questions we get a lot

Self-Employed FAQ

Deductions can affect income calculated from tax returns. A bank-statement program may be another option, but lenders still apply expense factors and other requirements. Lee can review your documentation to see which programs may fit.

Check the program details

Requirements vary by borrower, property, and lender. These official sources explain the program rules and annual limits.

Other loan programs

Not sure which one fits?

We'll help you compare. Here's what else is on our rate sheet.

Serving

Fort Thomas, KY Florence, KY Bellevue, KY Covington, KY Newport, KY Alexandria, KY Highland Heights, KY Cold Spring, KY Northern Kentucky Cincinnati, OH Dayton, KY

Ask about Self-Employed loans

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