Mortgages for business owners, told your way
If your income comes from a business, 1099s, or commissions, you have real options, including programs many banks do not offer. We qualify you the smart way, across 40+ lenders.
What is a self-employed mortgage?
A self-employed mortgage is not a separate, lesser loan. It is the same programs, qualified a smarter way. Instead of W-2s and pay stubs, lenders can document your income from your tax returns, your business bank deposits, or a profit-and-loss statement. If you own a business, contract as a 1099, freelance, or earn commission, you have real options.
Which of these sound like you?
Tap any that fit. Any one of these is a self-employed profile we work with every day.
Ways self-employed borrowers can qualify
| Program | How your income is documented | Best for |
|---|---|---|
| Conventional | Tax returns (net income, plus add-backs) | The best pricing, for established filers |
| Bank Statement | 12 to 24 months of bank deposits | When write-offs make tax returns look low |
| P&L Only | An accountant-prepared profit & loss statement | Strong businesses that want minimal paperwork |
| 1099 | Your 1099 income | Contractors with steady 1099 earnings |
| Asset-based / No-Income | Assets or a property’s cash flow instead of income | High-asset borrowers and investors |
How do lenders calculate self-employed income?
Here is the part most people do not know, and it usually works in your favor. On a full-doc loan, lenders qualify you on your net income after write-offs. But they also add back certain paper expenses that are not real cash out of your pocket, like depreciation, depletion, and amortization. Those add-backs can push your qualifying income higher than your tax return’s bottom line suggests.
And if write-offs still leave your returns looking too low? That is what bank-statement and P&L programs are for. They qualify you on your deposits or business profit instead of your tax returns. Most programs like to see a one to two year self-employment history, though some are more flexible.
The takeaway: do not assume you will not qualify because of your taxes. There is almost always more than one way to tell your income story.
Why a broker makes the difference
One bank has one rulebook. If your tax returns do not fit their box, you might just hear no, even though you would qualify somewhere else. As a broker, we shop 40+ lenders. If a full-doc conventional loan does not work, a bank-statement or P&L program at a different lender often will. Same borrower, different lender, different answer, at $0 processing or underwriting fees.
Self-employed mortgage FAQs
How many years do I need to be self-employed to get a mortgage?
Usually one to two years, though some programs are more flexible. If you recently went out on your own, do not count yourself out. Let’s look at the specifics.
Do my business write-offs hurt my chances of qualifying?
They can lower the income on your tax returns. But lenders add back certain paper expenses like depreciation, and if your returns still look low, a bank-statement or P&L program can qualify you on your actual deposits or profit instead.
Can I qualify using bank statements instead of tax returns?
Yes. Bank-statement loans look at your business or personal deposits, which helps when write-offs make your tax returns understate what you really earn.
What if I had one down year?
There are often options. Some programs weigh your recent trend rather than penalizing a single year. It is worth a quick review.
Do self-employed loans have higher rates?
Some flexible programs, like bank-statement loans, trade a bit of pricing for easier qualifying, while full-doc conventional usually has the best pricing. We compare them side by side so you can choose with eyes open.
What credit score do I need?
There is no single cutoff. Because we shop 40+ lenders, we can match you to the program that fits your profile.