Self-Employed & Bank Statement Loans

Overview

Qualify based on how you actually earn

Who it may fit

Business owners and independent contractors
1099 earners and gig workers
Borrowers whose tax returns don't reflect their cash flow

Things to know

Bank-statement programs may use 12 or 24 months of deposits to calculate income.
1099-based programs may use your 1099 forms instead of full tax returns.
These are typically non-QM loans, which can have different pricing, down payment, and reserve requirements than conventional loans.
I'm self-employed myself, and I'll explain the trade-offs honestly before you decide.

Main benefits

Bank-statement programs may calculate income from 12 or 24 months of business or personal deposits instead of tax returns, which can help if write-offs lower your taxable income.
1099 programs may use 1099 forms for contractors and gig workers.
Traditional conventional, FHA, and VA loans are still available to self-employed borrowers who document income with tax returns, and they are often the lower-cost choice when your returns support the payment.
Alternative programs may be available for purchases, refinances, and in some cases second homes or investment property.

Limitations & tradeoffs

Bank-statement and 1099 loans are usually non-QM loans. Rates, fees, and down payment requirements are often higher than for conventional loans.
Lenders may require larger reserves, a minimum credit score, and a business history (often two years), plus proof that the business exists, such as a CPA letter or business license.
Large, irregular deposits may need explanations, and lenders apply an expense factor to deposits rather than counting every dollar.
Some non-QM loans carry prepayment penalties, especially on investment properties. Read the terms before you commit.
Guidelines vary widely between lenders and change often.

Next step

Get a quote and tell me how you are paid. I will compare a tax-return loan with a bank-statement or 1099 option, explain what each costs, and give you a document checklist before anything is submitted.

Get a Quote →