Self-Employed Mortgages
HomyLoan helps self-employed borrowers find bank statement loans, non-QM options that use alternative income documentation so business owners and 1099 earners may qualify based on their actual cash flow instead of tax returns.
- Bank statements instead of tax returns
- For business owners and 1099 earners
- Non-QM options
The basics
What Is a Bank Statement Loan?
A bank statement loan is a non-QM self-employed mortgage that lets business owners and freelancers document income with 12 to 24 months of personal or business bank statements instead of tax returns. It can be a good fit if write-offs on your tax returns don't reflect your true earnings. These loans typically have higher rates or larger down payments than QM loans.
- Income proof
- Bank statements
- Loan type
- Non-QM
- Best for
- Self-employed
How it works
Your bank statement loan in four steps
Your income is real even when your tax returns don't show it. Here's how a bank statement loan gets you there.
- 01
Tell us about your business
Share how you earn: business owner, 1099 contractor or freelancer, and how long you've been self-employed.
- 02
Gather your statements
Provide 12 or 24 months of personal or business bank statements, or a P&L where the program allows it.
- 03
Income review and pre-approval
Deposits are reviewed to estimate qualifying income. Your loan officer matches you with non-QM options you may qualify for.
- 04
Underwriting and closing
The lender reviews your file and conditions. Review your Closing Disclosure, sign and get your keys.
Program highlights
Bank Statement Loan Features
Our self-employed mortgage options are built for business owners, 1099 contractors and freelancers. Our loan officers will review your bank statements or profit and loss (P&L) statement and help you find the non-QM program you may qualify for.
Statement History
12 or 24 months of personal or business bank statements allowed.
Loan-to-Value (LTV)
Maximum loan-to-value depends on your credit score, loan amount and the lender's program.
Loan Amounts
Loan amount limits vary by lender and program.
Debt-to-Income (DTI)
Maximum debt-to-income ratio is set by each lender's program.
Credit Score
Minimum credit score depends on the lender and the loan-to-value you choose.
Rate and Term
30-year fixed with a 10-year interest-only option available.
Property Types
Primary residences, second homes and investment properties.
- Get pre-approved
See what you may qualify for
A licensed loan officer can review your statements and compare bank statement, P&L and other self-employed options with you.
Program guidelines, limits and availability vary by lender and investor and may change. All loans are subject to credit approval and underwriting.
Getting ready
Documents self-employed borrowers are typically asked for
Lenders need to see that your income is steady and likely to continue. The exact list depends on the loan program, but these are the documents most often requested.
Tax returns
Traditional loans usually ask for one or two years of personal tax returns, and business returns if you own a corporation or partnership.
Bank statements
Recent statements show your assets and reserves. For a bank statement loan, 12 or 24 months of statements may be used to estimate income.
Profit and loss statement
A year-to-date P&L, sometimes prepared by a CPA or tax preparer, may be requested to show current business income.
Proof of your business
Lenders may ask for a business license, CPA letter or other records showing how long you've been self-employed.
- Income is estimated from deposits, often after an expense factor or business expense review.
- It's a non-QM loan, so rates or down payments are usually higher than conventional loans.
- It may suit owners whose tax returns show lower income because of write-offs.
- Guidelines differ by lender, so comparing options matters.
Documentation requirements vary by lender and program. Subject to credit approval and program guidelines.
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Self-employed mortgage FAQs
Yes. Self-employed borrowers can qualify for conventional, FHA and other loans with tax returns, or for non-QM options like bank statement loans if tax returns don't show their full income.
Many lenders look for about two years of self-employment history. Some may accept a shorter history in the same line of work, depending on the program.
A bank statement loan is a non-QM mortgage that estimates your income from 12 or 24 months of personal or business bank statements instead of tax returns.
Usually. Bank statement and other non-QM loans typically have higher rates or require larger down payments than conventional loans.
Yes, with traditional loans. Lenders generally use your income after business deductions on your tax returns, so large write-offs can lower your qualifying income.
Often, yes. 1099 contractors and freelancers may qualify with tax returns, bank statements or, with some programs, 1099 forms, subject to credit approval and program guidelines.