Self-Employed Borrowers

Mortgage Options for Self-Employed Borrowers

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

7 min readUpdated 2026Self-Employed Borrowers

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

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