Self-Employed?
You Can Still Buy a Home.
Your write-offs reduce your taxes — not your ability to qualify. Bank statement loan programs are built for exactly your situation. Let's use your real cash flow to get you approved.
Why Self-Employed Buyers Get Stuck
Traditional mortgage guidelines were designed for W-2 employees. Here's what self-employed borrowers actually run into — and how we solve it.
Bank statement loans use your actual deposits — 12–24 months of bank statements — not your taxed-down income. Your write-offs are a feature, not a disqualifier.
We average your deposits over 12–24 months for a stable income figure. Irregular income is normal for business owners and is factored in appropriately.
Some programs are available after 12 months of self-employment history, particularly if you were in the same industry before going independent. Let's look at your specific situation.
Traditional bank requirements don't account for how business owners actually generate income. Portfolio and bank statement programs are specifically designed for your situation.
Loan Programs for Self-Employed Borrowers
The right program depends on your tax return picture, how long you've been self-employed, and your cash flow. Here are the main paths.
Bank Statement Loan
Uses 12–24 months of bank deposits to calculate qualifying income. Ideal for business owners and 1099 earners with strong cash flow but significant write-offs.
Conventional (2-Year History)
If you have 2+ years of self-employment history and your tax returns show qualifying income (after add-backs), conventional financing may offer better rates.
FHA (Self-Employed)
FHA allows higher debt-to-income ratios and more flexible guidelines. With 2 years of tax returns showing qualifying income, FHA can work well for self-employed buyers.
What Documents Will You Need?
The documentation required depends on which loan program fits your situation. Here's a general breakdown. During pre-approval, I'll give you a specific checklist based on your exact situation.
Bank Statement Loan
- ✓12–24 months personal bank statements
- ✓12–24 months business bank statements (if applicable)
- ✓Business license or CPA letter verifying self-employment
- ✓Government-issued ID
Traditional Self-Employed (2+ yr)
- ✓2 years personal tax returns (1040)
- ✓2 years business tax returns (if applicable)
- ✓Year-to-date P&L statement (CPA prepared)
- ✓Last 2 months bank statements
Your Write-Offs Are an Asset, Not a Problem
I work with self-employed borrowers regularly. The most common frustration I hear is: “I make good money, but on paper my income looks low.”
Bank statement programs solve this completely. We use your actual deposits — what actually hits your account — to calculate qualifying income. Your CPA is maximizing your deductions for a reason; your mortgage shouldn't punish you for that.
If you're unsure whether you'll qualify, the best thing to do is have a 10-minute conversation. I can usually tell you where you stand in the first call.
Book a Free 10-Min Call →Self-Employed Mortgage Questions
A bank statement loan is a non-QM (non-qualified mortgage) program that calculates your income using your bank deposits — typically 12 or 24 months of statements — rather than tax returns. This is specifically designed for self-employed borrowers, business owners, and 1099 contractors whose tax returns understate their actual income due to legitimate business deductions.
Most programs require at least 24 months of self-employment history, particularly for conventional and FHA loans. Some bank statement programs accept 12 months of history, especially if you were in the same industry before going independent. Your specific timeline is something we'll review during pre-approval.
Bank statement loans (non-QM) typically carry slightly higher rates than conventional Fannie/Freddie loans because they're portfolio products held by the lender rather than sold to the secondary market. However, for borrowers who can't qualify conventionally, the trade-off is worthwhile. As your tax return income picture improves over time, refinancing to conventional is always an option.
It depends on the program and your business structure. For sole proprietors and single-member LLCs, personal statements are typically used. For corporations, business statements may be used with an expense factor applied. A CPA letter confirming your ownership percentage and business expenses is usually required.
Let's Figure Out Your Options
Most self-employed buyers are closer to qualifying than they think. A quick conversation tells you exactly where you stand.