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Self-Employed Borrowers

Mortgage Options for Self-Employed Borrowers

An overview of the main loan types available to entrepreneurs and 1099 earners.

7 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Self-Employed Borrowers

Short answer

An overview of the main loan types available to entrepreneurs and 1099 earners.

Conventional and FHA loans use tax returns. If your write-offs are aggressive, your qualifying income may be lower than your take-home reality.

Traditional (agency) loans

Conventional and FHA loans use tax returns. If your write-offs are aggressive, your qualifying income may be lower than your take-home reality.

Bank statement loans

Underwriters use 12–24 months of business or personal bank deposits to calculate income — no tax returns required.

Self-Employed Income Estimator

Ballpark your qualifying income across programs.

Open calculators

1099 and P&L programs

Some lenders qualify on 1099 income alone or off a CPA-prepared profit and loss statement.

DSCR

For investment properties, DSCR loans qualify based on the property's rental income rather than yours.

Key takeaways

  • Multiple paths beyond tax returns exist.
  • The right program depends on documentation, not size of income.

Frequently asked questions

Related mortgage option

Ready to apply this to a real loan? Review how Self-Employed Programs work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

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