Self-Employed Loan Programs
7 articles
The right loan program is what turns a hard approval into an easy one. Self-employed borrowers have more options than most realize — bank statement loans, asset depletion loans, 1099 loans, profit-and-loss programs, and other non-QM structures all qualify you differently. These guides draw on 30+ years of mortgage lending experience to explain how each program actually works, who it fits best, and what lenders look for. Matching your situation to the right program is the single biggest lever on getting funded.
All Articles
CPA Letter for a Mortgage: P&L, Expense-Ratio, and How Self-Employed Borrowers Use Them
A "CPA letter" means four different documents in self-employed lending. What each does, when a CPA-prepared P&L replaces tax returns, and how the expense-ratio letter raises bank-statement income.
Jun 25, 2026
Asset Depletion Loan: How the Divisor Math Actually Works
An asset depletion loan turns your liquid assets into qualifying income. Here is the divisor math, a full worked example, who it fits, and the requirements.
Jun 23, 2026
1099 Income Mortgage: Qualifying as an Independent Contractor
A 1099 income mortgage qualifies independent contractors on 1099 gross minus an expense factor — not Schedule C net. How it works, who qualifies, and how it beats a bank-statement loan.
Jun 20, 2026
No Tax Return Mortgage: How to Qualify Without Filing Returns
A no tax return mortgage qualifies you on bank deposits, assets, a P&L, or 1099s instead of your tax-return net. Here are the four programs, what they accept, and the trade-offs.
Jun 18, 2026
How Self-Employed Mortgage Income Is Actually Calculated
A borrower-side guide to how underwriters calculate self-employed mortgage income: the two-year average, which tax lines count, add-backs, declining income, and bank-statement programs.
Jun 13, 2026
Mortgage Add-Backs Explained: How Depreciation and Non-Cash Expenses Boost Your Qualifying Income
Add-backs let underwriters undo the non-cash deductions on your tax return. Here are the five expenses lenders add back to net profit — with a worked example showing the qualifying-income lift.
Jun 13, 2026
The Self-Employed Tax Trap: How Write-Offs That Save You Taxes Can Sink Your Mortgage
The deductions that minimize your tax bill also shrink the income a lender counts. Here is the self-employed tax trap, why the two years before you apply matter most, and how to plan around it.
Jun 13, 2026
Frequently Asked Questions
What is a bank statement loan?
A bank statement loan qualifies you on the deposits in your bank statements rather than your tax returns. The lender reviews 12 to 24 months of statements to gauge your real cash flow. It is the most popular non-QM program for self-employed borrowers whose write-offs make their tax returns look thin.
What is an asset depletion loan?
An asset depletion loan lets you qualify using your savings and investments instead of monthly income. The lender converts your eligible liquid assets into a qualifying income figure. It is ideal for retirees, business owners between ventures, and anyone who is asset-rich but shows low income on paper.
What is a non-QM loan?
Non-QM stands for non-qualified mortgage — a loan that does not follow the standard agency income rules. That flexibility is what makes it work for self-employed borrowers. Bank statement, asset depletion, 1099, and P&L loans are all non-QM programs that verify your ability to repay through alternative documentation rather than tax returns.
Can I get a mortgage with no tax returns?
Yes. No-tax-return programs are a core part of non-QM lending. Instead of tax returns, the lender qualifies you using bank deposits, 1099 forms, a profit-and-loss statement, or your assets. These options exist specifically because tax returns understate income for many self-employed borrowers.
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Key Terms to Know
1099 Income
Income reported to you and the IRS on a Form 1099 (rather than a W-2), typical of independent contractors and gig workers — and the basis for 1099-only loan programs that qualify you from the form itself.
Asset Depletion Loan
A non-QM loan that converts your liquid assets into a calculated monthly income stream, qualifying borrowers who have substantial savings or investments but limited documentable income.
Bank Statement Loan
A non-QM mortgage that qualifies self-employed borrowers on the deposits flowing into their bank accounts — typically 12 or 24 months of statements — instead of on tax returns.
Bank Statement Program
A lender's specific set of rules for a bank statement loan — how many months it reviews, whether it uses personal or business accounts, and what expense factor it applies — which varies widely from lender to lender.
Debt-to-Income Ratio (DTI)
The percentage of your gross monthly income that goes toward debt payments, including the proposed mortgage — one of the most important numbers in any loan approval.
Declining Income
A pattern in which a self-employed borrower's income has fallen year over year — a red flag that leads lenders to use the lower, more recent figure and demand an explanation.
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