You run a successful business, you have great credit, and you have money in the bank. But when you apply for a mortgage, the bank treats you like a high-risk borrower simply because you don’t receive a standard W-2 paycheck. If this sounds familiar, you are not alone.
💡 The “Write-Off” Dilemma
As a business owner, your CPA likely writes off as many expenses as possible to lower your tax bill. While this is great for taxes, it reduces your “Net Qualifying Income” on paper, making it harder to qualify for a traditional mortgage.
Standard Documentation Requirements
If you are applying for a traditional Conventional or FHA loan, lenders will generally look at your net income over the last 12 to 24 months. You will need to provide a more comprehensive paper trail than a W-2 employee.
Sole Proprietors & Freelancers (1099)
S-Corps, LLCs & Partnerships
Bank Statement Loans
What if you didn’t have to show your tax returns at all? For business owners who write off significant expenses, a Bank Statement Loan (Non-QM Loan) is often the perfect solution.
No Tax Returns Needed
Lenders calculate your income based entirely on the deposits going into your personal or business bank accounts over the last 12 to 24 months.
Higher Qualifying Income
Because we use actual cash flow instead of “Net Income after write-offs,” you can usually qualify for a much larger loan amount.
Flexible Requirements
Available for home purchases, refinancing, and investment properties. Can be used for 1099 contractors, freelancers, and small business owners.
The Trade-Off
These loans typically require a slightly larger down payment (10% to 20%) and may have a slightly higher interest rate than traditional loans.
Let’s review your cash flow
Don’t let your tax write-offs keep you from buying your dream home. Our experts know exactly how to structure self-employed income to get you approved.