Self-employed and want a mortgage? Your options beyond tax returns
If your tax returns do not tell the whole story of your income, there are other ways to document it.
Why self-employed buyers get stuck
Many business owners and independent contractors take legitimate deductions that lower their taxable income. That is smart for taxes, but a standard mortgage review looks at the income on your returns, so it can make you look like you earn less than you really do.
Options that look at the whole picture
Programs and requirements are set by the wholesale lenders we work with, and terms often differ from standard financing. We will explain the tradeoffs plainly so you can decide what fits.
- Bank statement programs, which review deposits into your personal or business accounts over a period of time instead of tax returns.
- Asset-based programs, which consider verified liquid assets in place of traditional income documents.
- Standard conventional financing, which can still work when your returns show enough income after deductions.
How to prepare
- Gather recent bank statements for the accounts your business income flows through.
- Keep personal and business funds as separate as you can.
- Have a clear picture of your business's history and how long you have been operating.
Find out where you stand
A licensed originator can review your situation and tell you which path is realistic. There is no obligation to ask.
Questions about your situation?
Tell us about your loan and a licensed originator will follow up. There is no obligation to ask.