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

No. This is literally the most common self-employed scenario we see. Bank-statement programs compute qualifying income from your deposits (with a 50% expense factor typical), so aggressive tax strategy doesn't hurt you on the loan side. We've closed dozens of loans for business owners whose 1040 showed $40k but whose real cash flow was $120k.

What's a bank statement loan, exactly?

A non-QM (non-qualified-mortgage) program where qualifying income is derived from 12 or 24 months of bank statements, either personal, business, or mixed. The lender looks at your average monthly deposits, applies a standard expense factor (usually 50%), and that's your "income" for underwriting. Completely legitimate, fully documented, widely available.

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?

Bank statement and 1099 programs price 0.5-1.0% higher than conventional because they're non-QM. Conventional loans using your tax returns price the same as any W-2 borrower. The question isn't "self-employed = higher rate", it's which path qualifies you, and we price both.

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?

For high-net-worth borrowers without traditional income: we total your qualifying liquid assets (cash + investments + partial retirement), divide by the loan term (typically 60-120 months), and that becomes your qualifying monthly income. Requires significant assets but no job or income documentation otherwise.

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.

Big banks count your tax returns. We count your actual deposits, 1099s, or assets. Guess which path usually approves.

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About Self-Employed Mortgage Loans

Self-employed borrowers, 1099 contractors, small-business owners, freelancers, gig workers, real estate agents, get denied by big banks constantly, despite strong real income. The reason is simple: banks only know how to read tax returns with aggressive deductions, which can show a fraction of what you actually earn. We qualify self-employed buyers across four paths: traditional conventional (tax returns), bank statement programs (12-24 months of business deposits), 1099-only programs, and asset-depletion programs for high-net-worth borrowers. Same wholesale shopping, same rate competition, different qualification math.

Key benefits

Bank statement programs

12 or 24 months of business or personal bank statements, we compute your real monthly income from actual deposits. Common path for business owners with heavily deducted Schedule Cs.

1099-only programs

If you're paid on 1099s, we can qualify using just those plus bank statements. No need to show tax returns with every deduction hashed out.

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

If your tax returns show clean income after deductions, conventional is usually cheapest. We'll run all four paths and pick whichever prices best.

The process

15-minute consult, we pick the best qualifying path for your situation
Gather docs appropriate to that path (not all of them)
Shop your file across self-employed-friendly wholesale lenders
Underwriting, typically 25-35 days (slightly longer than W-2 because non-QM review is more involved)

Questions we get a lot

Self-Employed FAQ

No. This is literally the most common self-employed scenario we see. Bank-statement programs compute qualifying income from your deposits (with a 50% expense factor typical), so aggressive tax strategy doesn't hurt you on the loan side. We've closed dozens of loans for business owners whose 1040 showed $40k but whose real cash flow was $120k.

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

Lee answers personally. Usually within a business hour.

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