1099 Loans
Qualify using your 1099 earnings history in place of full tax returns — ideal for independent contractors and gig-economy workers. Lenders average 1–2 years of 1099 income to establish a stable qualifying figure.
Self-Employed - NON-QM Mortgage Solutions
Self-Employed Loans 2026: Fast-Track Funding Where Your Tax Write-Offs Don’t Matter
Tax write-offs are a smart business tool — but they shrink your taxable income on paper, making conventional lenders question your ability to repay. Your real cash flow tells a different story. We qualify you on what you actually earn, not just what the IRS sees. We have numerous ways to qualify if you're self-employed.
Self-Employed Income Qualification
No Full Tax Return Requirement
Programs for Self-Employed Business Owners
NMLS Registered
The Problem
Why Traditional Mortgages Fall Short for the Self-Employed.
Conventional mortgage underwriting is built around W-2 earners. Lenders calculate your debt-to-income ratio (DTI) using the taxable income reported on your federal tax returns — not your actual deposits, revenue, or business profits. For self-employed borrowers, freelancers, and gig workers, aggressive but legal business deductions compress that taxable figure well below real earning power.
The result: a thriving consultant, a profitable LLC owner, or a full-time 1099 contractor may show $60,000 in taxable income while depositing $180,000 a year. Under standard conforming guidelines, the $60,000 drives underwriting — and the loan gets declined. The business owner's financial discipline is penalized, not rewarded.
Non-QM (non-qualified mortgage) programs are designed specifically to bridge this gap. By using alternative documentation — bank statements, 1099 transcripts, CPA-prepared P&L statements, or liquid asset calculations — lenders can evaluate real cash flow and approve borrowers who genuinely qualify, even if traditional paperwork says otherwise.
Alternative Documentation
Loan Programs Designed for You.
Eight purpose-built non-QM programs, each matched to a different income profile, asset situation, or documentation type.
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Asset Depletion Loans
Convert verified liquid assets — savings, brokerage accounts, retirement funds — into a calculated monthly qualifying income. Well-suited for retirees and high-net-worth borrowers with substantial assets but limited current earned income.
Bank Statement Loans
Qualify using 12–24 months of personal or business bank deposits as income evidence, with a standard expense-factor deduction applied to gross deposits. No tax returns required — your consistent deposits are the proof of income.
Bank Statement 2nd Lien
A second-lien product that uses bank-statement income verification, allowing you to tap your home equity without touching or refinancing a favorable first-mortgage rate. Keep your first mortgage intact while accessing the equity you've built.
Jumbo Loans
Non-agency financing above the conforming or high-cost loan limit for self-employed borrowers with complex, larger income profiles. Designed for high-value properties where standard conforming guidelines don't apply.
P&L Loans
Qualify using a CPA-prepared profit and loss statement instead of tax returns or bank statements. This path works well for business owners whose books clearly document income, even when deposits or tax filings are complex.
Stated Income Loans
A simplified income declaration path typically available for investment and commercial properties, requiring strong credit and liquid reserves. Reduces documentation burden for experienced investors with clear asset profiles.
Portfolio Loans
Lender-held loans with fully custom underwriting for unique situations, high-balance amounts, or borrowers who don't fit any other program. A portfolio lender writes its own rules — ideal when conventional and non-QM programs both fall short.
Our Difference
Why Self-Employed Borrowers Choose Us.
No Tax Returns Required
Qualify through bank statements, 1099s, P&L statements, or asset calculations — not IRS transcripts.
Higher Loan Amounts Available
Finance properties well above conforming limits, with jumbo and portfolio options reaching $10M or more.
Flexible DTI Ratios
Non-QM lenders allow higher debt-to-income ratios than conventional programs, reflecting real earning power rather than taxable income.
Multiple Documentation Paths
Eight distinct programs mean we can match you to the right alternative documentation type for your income profile.
Credit Scores from 600 Considered
Many non-QM programs accept credit scores starting around 600, with terms improving as your score rises.
Fast Pre-Qualification
Receive a preliminary qualification assessment quickly — no waiting for a full underwrite before knowing if you're on the right path.
Freelancers / 1099s / Gig Workers Welcome
Programs built for non-traditional employment — if you earn income without a W-2, there's a path here for you.
Competitive Non-QM Rates
Access to multiple non-QM lenders means we can shop your scenario for competitive pricing, not just program availability.
Requirements
What You'll Need to Qualify.
General eligibility guidelines across non-QM programs. Specific requirements vary by loan type and lender.
- 01
2+ Years Self-Employed
Most non-QM programs require a verifiable self-employment history of at least two years, demonstrating income stability even without a W-2. Some programs consider 12 months with strong compensating factors.
- 02
Credit Score 600 or Higher
Many alternative documentation programs accept credit scores starting around 600, though better rates and more flexible terms become available as scores increase toward 700 and above.
- 03
Down Payment of 10–20%
Non-QM loans typically require a down payment ranging from 10% to 20% or more, depending on the program, loan amount, and credit profile — reflecting the risk-adjusted nature of alternative documentation lending.
- 04
12–24 Months of Documentation
Provide 12 to 24 months of bank statements, 1099 forms, a CPA-prepared P&L, or asset account statements — the exact documentation type depends on which non-QM program you're pursuing.
- 05
Liquid Asset Reserves
Most programs require 3–12 months of mortgage payment reserves held in verifiable liquid or near-liquid accounts, providing a financial cushion that reduces lender risk on non-QM products.
- 06
Eligible Property Types
Primary residences, second homes, and investment properties are generally eligible. Warrantable and non-warrantable condos, multi-family, and mixed-use properties may qualify under portfolio lending programs.
- 07
Loan Amounts Up to $10M+
Non-QM and portfolio lenders can accommodate loan amounts well above conforming and high-cost limits, making them suitable for luxury properties and high-balance scenarios that agencies don't support.
∗ Specific credit minimums, down payment requirements, reserve amounts, and eligible property types vary by program and lender. Contact us for a scenario-specific assessment.
Frequently Asked Questions About Self-Employed and Non-QM Loans
Real income, real qualification — how self-employed borrowers get approved without a tax return deep-dive.
A non-QM (non-qualified mortgage) is any home loan that does not meet the Consumer Financial Protection Bureau's definition of a "qualified mortgage" under the Ability-to-Repay rule — primarily because it uses alternative documentation methods rather than the standard tax-return-and-paystub income calculation. Non-QM loans are not backed by Fannie Mae, Freddie Mac, or government agencies, so they are funded by private lenders or held in a lender's own portfolio. They generally carry slightly higher interest rates than conforming loans to compensate for that difference, but they open homeownership to borrowers whose income and financial situation don't fit the conventional mold.
For bank statement loans, lenders total all deposits across 12 or 24 months of your personal or business bank statements, then apply an "expense factor" — typically 10%–50% for personal accounts and 20%–50% for business accounts — to arrive at a net qualifying income figure. For example, if your business account shows $240,000 in deposits over 12 months and the lender applies a 50% expense factor, your qualifying income would be $10,000 per month. That figure is then used to calculate your DTI (debt-to-income ratio) and determine how large a loan you can support. Lenders may vary on expense factors, so the program can be shopped for your specific deposit pattern.
Most non-QM programs — including bank statement, 1099, P&L, asset depletion, and stated income loans — do not require full tax returns as the primary income verification document. However, some lenders may request tax returns as supplemental background information or to confirm business ownership and two-year self-employment history, even if returns are not used to calculate income. If tax returns would help your application (for example, if your taxable income is actually close to what you report), your loan officer can decide whether to include them or rely solely on alternative documentation.
Many non-QM lenders will consider credit scores starting at 600, though program terms — including interest rate, down payment requirement, and maximum loan-to-value — improve materially as scores rise above 660 and 700. Borrowers with scores above 720 typically access the most competitive non-QM pricing. Credit score minimums also vary by program: jumbo and stated income loans often require higher scores (680+), while bank statement programs may be more flexible. Recent credit events such as a short sale, foreclosure, or bankruptcy may be permissible with sufficient seasoning time, depending on the lender.
The best documentation path depends on which source most accurately — and most favorably — represents your income. Bank statement loans work well when your business deposits are consistent and your expense ratio is reasonable; P&L loans work best when a CPA-prepared statement shows strong net income that exceeds what deposits alone would indicate; 1099 loans are ideal when your total 1099 income is significantly higher than your taxable income after deductions. In some scenarios, two paths qualify you — in which case we can run both and compare the resulting loan amounts and rates before you decide. Contact us with your specific numbers and we'll identify the strongest path.
Down payment expectations for non-QM loans typically range from 10% to 25%, depending on the program, loan amount, property type, and credit profile. Bank statement and 1099 loans may be available with as little as 10% down for strong credit profiles, while jumbo and stated income programs often require 20%–30% to reduce lender exposure. A larger down payment frequently unlocks better rates and removes the need for private mortgage insurance equivalents. We'll walk you through the down payment impact on pricing across any programs you're evaluating.
Self-employed and Non-QM loans offer flexible qualification using bank statements, P&L statements, or 1099 income instead of traditional tax return documentation, with terms that vary by lender and program. Consult a licensed mortgage professional to review current requirements and confirm the right fit for your income type.
Get My Free QuoteBorrower Stories
Real Borrowers. Real Results
"I'm a freelance UX designer and had been turned down twice by traditional lenders because my tax returns looked terrible after write-offs. The bank statement loan program looked at two years of deposits instead — and I closed on my home in six weeks. I couldn't believe it was that straightforward."
M. Torres
Freelance UX Designer · Bank Statement Loan
"My LLC is profitable but my accountant maximizes every deduction. Every conventional bank I spoke with wanted to base the loan on my Schedule C net, which was a fraction of what I actually run through the business. The P&L loan used my CPA's profit statement — the right number — and I got approved for a jumbo amount I wouldn't have qualified for otherwise."
D. Kapoor
LLC Owner, Marketing Agency · P&L Loan
"I drive full-time for two gig platforms and do contract deliveries on the side. All 1099 income — no W-2 in sight. I assumed I just couldn't get a mortgage. The 1099 loan program added up both income sources and I qualified for more than I expected. The process was clear and the team walked me through every step."
R. Jackson
Gig Platform Worker · 1099 Loan
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Stop Letting Your Write-Offs Stop You.
Tell us about your scenario and a non-QM specialist will reach out within minutes — no commitment, no hard credit pull, just a clear picture of which programs you qualify for and what your options look like.
Response within minutes
A specialist reviews your scenario and reaches out fast.
No hard credit pull
Pre-qualification uses a soft inquiry that won't affect your score.
Non-QM specialists
Our team focuses exclusively on alternative documentation lending.
Access to multiple lenders
We shop your scenario across a broad panel of non-QM lenders.