Your business income deserves context.

Navigating a self-employed mortgage file requires understanding how tax returns are analyzed, how non-cash write-offs are added back, and when alternative documentation (such as bank statements or P&L loans) provides a clearer qualification path.

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What matters

Start with the connected picture.

Traditional and alternative documentation can tell different parts of the income story, but every path still requires a complete, program-specific review.

Start with the complete borrower and business picture
Underwriters evaluate business stability, industry tenure, ownership percentage (25% or greater is classified as self-employed), revenue trends, and business entity structure (Sole Proprietorship, LLC, S-Corp, or C-Corp).
When Non-QM bank statement loans make practical sense
If business write-offs reduce taxable net income below qualifying thresholds, Non-QM bank statement programs evaluate 12 or 24 months of business or personal bank account deposits rather than tax returns.
Personal debt, liquidity, and business solvency
Lenders also examine whether business debts are paid from business accounts (which can be excluded from personal DTI if 12 months of cancelled business checks are provided).

Know your choices

Programs you should know about.

Self-employed / Non-QM

Alternative-documentation paths that still require program-specific review.

Asset-based

Options that may consider eligible assets when evaluating qualifying income.

Jumbo

Purchase and refinance structures above applicable conforming limits.

Prepare these items

Organize what you already know.

Organize what is already available before assuming a particular documentation method will apply.

Are both personal (1040) and business (1120-S, 1065, Schedule C) tax returns for the past 2 years readily available?

Are there significant depreciation or amortization deductions on your business schedules?

Do you have 12 to 24 consecutive months of complete business and personal bank statements?

Are personal auto loans or credit cards paid directly through the business account?

Is your business showing an upward, stable, or declining revenue trend over the past 24 months?

Alternative documentation is still documentation. Every available path remains subject to its own definitions, calculations, and underwriting requirements.

Plan a payment

Estimated monthly housing cost

Estimate a fixed-rate, fully amortizing principal-and-interest payment, then add the property costs you know. Use a loan amount—not the home price.

Loan amount

Interest rate (%)—not APR

Loan term (years)

Annual property taxes

Total annual property insurance

Include homeowners and flood insurance when both apply.

Monthly mortgage insurance

Leave blank if you do not have an estimate.

Monthly HOA or condo fee

Usually paid separately from the mortgage payment.

Estimated monthly housing cost

$2,523

Principal + interest: $2,023
Property taxes: $400
Property insurance: $100
Mortgage insurance: $0
HOA or condo fee: $0

This assumes level monthly payments on a fixed-rate loan. It does not model an ARM, interest-only period, balloon, buydown, construction phase, utilities, maintenance, or costs you left blank.

Talk through this estimate

Common questions

Quick answers for first-time buyers.

Open a question for a short answer. If your situation is different, ask Ardi.

Do I need two years of tax returns?

Not always. Some programs require only one year, and alternative documentation paths like bank statements may not use tax returns at all.

What are bank statement loans?

They are loans that use personal or business bank statement deposits over 12 or 24 months to calculate qualifying income, rather than relying on tax returns.

Are interest rates higher for self-employed?

If you qualify using traditional tax returns (e.g. Conventional), the rates are identical. Alternative documentation programs often have higher rates.

What if I have 1099 income?

1099 contractors are considered self-employed. Depending on the program, you may qualify using 1099 forms alone or through traditional self-employed methods.

Your next step

Let the records guide the conversation.

Use the tools to organize the business and borrower picture, or talk with Ardi about which documentation questions should be answered first.

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