Self-Employed Loans

Self-Employed Loans: Mortgage Solutions for Entrepreneurs & Business Owners

Getting a mortgage as a self-employed borrower can be more challenging due to traditional income verification requirements. However, self-employed home loans provide flexible financing solutions for business owners, freelancers, independent contractors, and gig workers who may not have W-2 income.

Types of Self-Employed Loans

1️⃣ Bank Statement Loans (No Tax Returns Required)

A Bank Statement Loan allows self-employed borrowers to qualify based on bank deposits instead of tax returns.

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No Tax Returns or W-2s Required

– Lenders use 12-24 months of bank statements to determine qualifying income.

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Higher Loan Limits Available

– Ideal for high-income earners who write off expenses on tax returns.

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Flexible Down Payment Options

– Typically 10-20% down required.

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Available for Primary, Second Homes & Investment Properties.

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Best For:

Self-employed borrowers with strong cash flow but lower reported taxable income.

2️⃣ Profit & Loss (P&L) Mortgage Loans

A P&L Loan allows self-employed borrowers to use a CPA-prepared Profit & Loss statement instead of tax returns.

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No Tax Returns or Pay Stubs Needed – Income is verified via a P&L statement from a licensed CPA.

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Flexible Credit Requirements – Minimum 620+ credit score preferred.

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Ideal for High Expense Businesses – Helps borrowers with significant tax write-offs.

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Available for Purchase or Refinance.

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Best For:

Business owners who prefer using a CPA-certified Profit & Loss statement for income verification.

3️⃣ 1099-Only Loans (For Independent Contractors & Gig Workers)

For borrowers who receive 1099 income instead of W-2s , this program allows mortgage qualification based solely on 1099 earnings.

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No Tax Returns Required – Lenders use 12-24 months of 1099 statements instead.

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Great for Commission-Based Workers – Ideal for real estate agents, consultants, and gig economy workers.

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Low Down Payment Options – Some lenders allow as little as 10% down.

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Flexible DTI Ratios – Lenders may allow higher debt-to-income (DTI) ratios than conventional loans.

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Best For:

1099 earners who want an easier way to qualify without extensive income documentation.

4️⃣ DSCR (Debt Service Coverage Ratio) Loans (For Investment Properties)

A DSCR loan is perfect for self-employed real estate investors because it qualifies based on rental income instead of personal income.

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No Personal Income Verification Required.

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Loan Qualification Based on Rental Income – DSCR of 1.0 or higher preferred.

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Down Payment: 20-30% typically required.

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Can Finance Multiple Investment Properties.

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Best For:

Self-employed real estate investors who want to qualify based on rental income rather than personal income.

5️⃣ Conventional & FHA Loans for Self-Employed Borrowers

Self-employed borrowers can still qualify for traditional mortgages, but they must meet stricter documentation requirements.

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Tax Returns Required (2 Years)

– Must show stable self-employment income for at least 2 years.

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Higher Credit Scores May Be Needed

– Lenders prefer 640+ for FHA, 680+ for conventional.

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DTI Must Be Within Standard Limits

– Typically 43% or lower for conventional loans.

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Best For:

Self-employed borrowers with consistent taxable income over the last 2 years.

🔹 Which Self-Employed Loan is Right for You?

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Need to qualify without tax returns?

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Bank Statement Loan

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Prefer using a CPA-prepared Profit & Loss statement?

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P&L Mortgage Loan

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Work as an independent contractor or gig worker?

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1099-Only Loan

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Investing in rental properties?

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DSCR Loan

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Have strong tax returns and want a traditional mortgage?

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Conventional or FHA Loan

Self-employed borrowers have more loan options than ever before, making homeownership easier and more accessible.

Let’s find the best self-employed mortgage solution for you!