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Cozy Porch

Self-Employed Buyers

As a self-employed borrower, you have several mortgage options tailored to your unique income situation. If you have strong credit and can document your income through tax returns, a conventional loan may still be a great fit. But if your income is harder to document or you take significant tax write-offs, a bank statement loan could allow you to qualify using your personal or business deposits instead of tax returns. You might also benefit from other Non-QM (non-qualified mortgage) loans, which offer more flexibility for irregular income streams or non-traditional financial profiles. Don’t overlook FHA and VA loans, either—they’re still accessible to self-employed borrowers who meet the standard guidelines. Each loan type has different documentation and qualification requirements, so working with an experienced mortgage professional can help you find the option that best fits your financial story.

Non-QM Loan Options for Self-Employed Borrowers

If you're self-employed, you already know that qualifying for a traditional mortgage can be tricky. Maybe your income fluctuates, or you take advantage of tax write-offs that lower your taxable income on paper. That’s where Non-Qualified Mortgage (Non-QM) loans come in—they're designed for people just like you.

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What is a Non-QM Loan?

A Non-QM loan doesn’t follow the strict rules set by Fannie Mae and Freddie Mac. Instead, it gives you more flexibility to qualify based on how you actually earn and manage your money—not just what's on your tax return.

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Types of Non-QM Loans

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1. Bank Statement Loans

  • Instead of tax returns, you’ll use 12 to 24 months of personal or business bank statements to show your income.

  • No tax returns needed

  • Great if you write off a lot on your taxes

  • Loan amounts can go up to $3.5 million

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2. Profit & Loss (P&L) Statement Loans

  • If you or your CPA can provide a year-to-date Profit & Loss statement, that may be enough to qualify.

  • Useful if your income varies month to month

  • Less paperwork than traditional loans

  • Flexible for your unique business situation

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3. Asset Depletion Loans

  • If you have significant assets, you may be able to qualify without traditional income. Lenders will calculate income based on your asset balances.

  • No employment or income verification

  • Ideal if you're retired or living off investments

  • Works for primary homes, second homes, or investments

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4. 1099-Only Loans

  • If you’re a contractor or freelancer, you can use your 1099s from the past one or two years instead of tax returns.

  • No need for a full tax return

  • Perfect for gig workers and independent professionals

  • Primary, Second Homes, Investment Properties​

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What You’ll Typically Need to Qualify

  • Credit Score: Most lenders look for at least 660

  • Down Payment: Expect to put down 10-25% depending on the product

  • Rates: Slightly higher than conventional loans

  • Prepayment Penalties: Possible, especially on investment loan

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Is a Non-QM Loan Right for You?

If you’re a:

  • Business owner

  • Freelancer or 1099 contractor

  • Investor

  • Retiree with assets

...and you’ve been told “no” by traditional lenders, a Non-QM loan might be your “yes.”

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Let’s Talk

Non-QM loans give you the flexibility to qualify on your terms. If you're ready to explore these options or just want to understand what you might qualify for, let's connect. I’ll walk you through the best solutions based on your specific situation.

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