Self-Employed Loan Solutions

Alternative Documentation for Self-Employed Borrowers

If you’re self-employed or a freelancer, traditional tax returns often don’t reflect your true income because of business write-offs. That’s why lenders may use alternative documentation to verify your ability to qualify.

Common Options Include:

• Bank Statements – Personal or business bank statements (typically 12–24 months) provide a direct record of deposits and cash flow.
• 1099 Forms – Show third-party verification of contractor or freelance income.
• Profit & Loss (P&L) Statements – CPA-prepared statements give a clear record of business revenue and expenses.
• Asset Depletion – Liquid assets (such as savings, stocks, bonds, or retirement accounts) and investment income (dividends, interest, or portfolio balances) can be used to calculate qualifying income and demonstrate repayment ability.
• CPA Letter – Confirms business ownership, history, and financial stability.

Why It Matters:

• Provides a more accurate view of cash flow than tax returns alone.
• Helps calculate qualifying income when taxable income looks artificially low.
• Gives lenders confidence by balancing higher risk loans with strong financial documentation.

These programs are part of today’s non-QM (non-qualified mortgage) options, giving self-employed borrowers more flexibility to secure financing.