Mortgage Loans for the
Self-Employed

Lenders average your qualifying monthly deposits over the statement period, which can be as little as 12 months. For business accounts, an expense factor is subtracted to account for business operating costs, and the remaining average is used as qualifying income. Which accounts count and the expense factor are confirmed per program, and a CPA letter confirming actual business expenses may help on some programs.

Yes. Bank statement programs typically carry higher rates than conventional. Your actual rate and APR depend on your scenario and the lender. The higher rate reflects the additional risk profile of alternative documentation. Get a personalized rate quote from a loan officer →

Possibly. Some buyers refinance to conventional later if their tax returns support it. Future approval and rates are not guaranteed. Beeline can talk through a possible refinance path when setting up the initial purchase loan.

Not necessarily 2 years. Beeline can work with borrowers self-employed under 2 years who have connecting experience in the same line of work. Talk to Chris about your specific situation.

Mixed income is actually common and can sometimes work with conventional financing, your W-2 income from a primary job is fully counted, and self-employment income (from a side business, freelance work, etc.) adds to it using standard tax return qualification. If your total qualifying income is sufficient with just the W-2 component, conventional may be available without bank statements at all. We analyze the most favorable approach for your specific income mix.

For bank statement loans: as little as 12 months of bank statements (which accounts count is confirmed per program), a CPA letter or proof of business existence (business license, entity documents), and a standard loan application. For conventional or FHA self-employed loans: 2 years of personal and business tax returns, a current profit and loss statement, and business bank statements. The list varies by loan type and program.

Yes, if your tax returns show sufficient qualifying income. Conventional underwriting uses the 2-year average of your net income after deductions. The challenge is that many self-employed borrowers write off significant expenses, which lowers taxable income and qualifying income simultaneously. If your adjusted gross income is strong, conventional works. If write-offs reduce it significantly, bank statement or alternative documentation loans are often the better path.

It affects how income is calculated, which determines your maximum qualifying loan amount. Self-employed borrowers using tax returns qualify on net taxable income, not gross revenue. Those using bank statements qualify on average deposits minus an expense factor. Beeline reviews your specific financials to identify which documentation method produces the strongest qualifying income for your situation.

A 1099 mortgage is a specific alternative documentation loan that uses 12-24 months of 1099 income forms instead of W-2s or tax returns. It's separate from a bank statement loan but serves a similar purpose for independent contractors whose income shows clearly on 1099s. Beeline shops wholesale lenders that offer 1099 programs. Availability varies by lender.

Typically the same as a standard purchase, around 30-40 days once documents are submitted. The main variable is how quickly you gather bank statements and a CPA letter. Delays usually happen when statements are incomplete or deposits are inconsistent and require explanation. Starting the document gathering early keeps the timeline on track.