Self-employed mortgage financing, qualified on real cash flow
Traditional mortgages qualify you on your tax returns — which often understate what a business owner actually takes home. Bank-statement and 1099 programs qualify you on the cash flow your business produces instead, and we price the traditional route first in case it's cheaper.
Who it fits
Business owners
Self-employed borrowers whose tax deductions make their qualifying income look lower than actual cash flow.
1099 contractors & gig workers
Independent contractors without traditional W-2 income documentation.
Recently self-employed
Some programs accept as little as 12 months of self-employment history, depending on the file.
Bank-statement vs. traditional income documentation
An illustrative comparison of how qualifying income is calculated.
| Method | Documents used | Typical qualifying income |
|---|---|---|
| Traditional (tax returns) | 2 years tax returns | Net income after deductions |
| Bank statement | 12-24 months statements | Average deposits, expense factor applied |
Illustration only. Actual qualifying income calculations depend on the specific program, your deposit history, and lender guidelines.
Where bank-statement loans help
- Qualify on cash flow instead of taxable income
- No tax returns required on most programs
- Available for a range of business structures, including 1099 and LLC
- We price a traditional loan first in case it's the cheaper path
What to weigh
- Typically requires a larger down payment than conventional
- Rates run somewhat higher than fully-documented loans
- Requires organized bank statements and business documentation
- Not every lender offers every variation — matching matters
Common questions
Do I need tax returns for a bank-statement loan?
Most bank-statement programs don't require tax returns — qualifying income is calculated from 12-24 months of bank deposits instead.
How long do I need to be self-employed?
Many programs look for at least two years, though some accept 12 months with strong compensating factors.
Is a bank-statement loan always more expensive?
Rates run somewhat higher than fully-documented loans, but we always price a traditional loan first in case your tax returns actually qualify you for better terms.
Can I use this for an LLC or S-corp?
Yes — most bank-statement programs accommodate a range of business structures, including personal and business account combinations.
See what your cash flow qualifies you for
No cost, no obligation — we'll price both the bank-statement and traditional route.