Self-Employed Borrowers
Self-Employed Mortgages & Bank Statement Loans
Write-offs shouldn't cost you a house. There are documentation paths built for business owners.
Joe Piccirello | NMLS #1988505
If you're a business owner, contractor, realtor or 1099 earner, you already know the problem: your tax returns are optimized to lower taxable income, and a traditional underwriter reads that as low income.
We work with alternative documentation programs that qualify you on deposits or business financials instead of net taxable income — while still comparing them honestly against a standard conventional loan when your returns support it.
- 12- or 24-month bank statement programs
- 1099-only income documentation
- Profit & loss (P&L) qualification options
- Asset depletion for asset-rich borrowers
- DSCR loans for rental property investors
- Standard conventional when your returns support it
How Bank Statement Loans Work
Instead of tax returns, the lender reviews 12 or 24 months of personal or business bank statements and calculates qualifying income from the deposits, applying an expense factor for business accounts. There's no requirement to document net profit the way a conventional loan does.
Pricing on these programs is higher than conventional because they carry more risk for the investor. Many borrowers use them to buy now and refinance into conventional financing in a year or two once their documented income catches up.
What You'll Typically Need
Expect to show two years of self-employment in the same business or industry, a business license or CPA letter confirming your business exists, 12–24 months of statements, and a larger down payment than a conventional buyer — commonly 10%–20% depending on credit and program.
Don't Rule Out Conventional Financing
If your last two years of returns show reasonable income, a standard conventional or FHA loan will almost always be cheaper. We review your returns first and only moves to alternative documentation when the math says it's the better outcome for you.
Frequently Asked Questions
How long do I need to be self-employed to qualify?
Two years is the standard expectation, though some programs allow one year with a strong history in the same line of work.
Are rates higher on bank statement loans?
Yes, typically. That's the cost of the flexible documentation, and it's often temporary — many borrowers refinance into conventional financing later.
Can I use business bank accounts?
Yes. Business account deposits are usually reduced by an expense factor, while personal account deposits are generally counted more fully.
Joe Piccirello | NMLS #1988505
Licensed mortgage loan originator. Verify licensing at NMLS Consumer Access.
Edge Home Finance Corporation | NMLS #1988505
5868 Baker Rd, Minnetonka, MN 55345, USA
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