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Self-Employed & 1099 Earners

Self-Employed Loan Program

The bank statement home loan solution for business owners, freelancers, and self-earners

Already prequalified? Contact us for a second opinion.

You’re self-employed, work in the gig economy, or run a side hustle, and you’re ready to buy a home but don’t have traditional pay stubs or tax returns to document income. Our Bank Statement Program provides a mortgage loan solution to help business owners qualifying to purchase or refinance a home. 

The process of prequalification for this program is not unlike any other home loan. You will complete a mortgage application using a secure online website, and instead of tax returns or paystubs, you will provide 12 months of personal or business statements. An income to qualify confirmation will take 48 hours, and you will receive a detailed financing presentation outlining your mortgage options.

Highlights

  • Must be self-employed for 2 years to qualify
  • Loans up to $10 million
  • Available for purchase and cash-out or rate-term refinance
  • Primary, second home, or investment properties
  • 12- or 24-months business or personal bank statements required
  • 1099 income options available
  • Interest-only terms are available with 30-or 40-year loan terms
  • Full documentation income from a co-borrower who is not self-employed can be used in addition to bank statement income
  • 85% Loan to value to a loan amount of $1,000,000 owner-occupied
  • US Citizens, Permanent Resident Alien, Non Permanent Resident Alien with the following visas: E, G, H, L, O, O, and TN are eligible

FAQ

Bank Statement Loan Programs use your bank statements to document your income rather than relying on pay stubs or W2s.

Since they are a Non-QM loan product, we may require 10-20% down. We will also want to see a higher credit score than conventional loans usually require.

Yes! Including cash-out refinances who have enough home equity to meet lending requirements.

The calculation of income for a Bank Statement Program is based on the type of business, the percentage of ownership of the business, and the ability to document the income to qualify. 

A loan officer will average the gross deposits of the business over 12 months and then apply a standardized expense factor based on a category of the business. Once an expense factor is applied to the gross deposits the net income can be used as income to qualify for a mortgage transaction. 

In situations where standardized expense calculations reflect a higher expense factor than the actual expenses, there is a secondary calculation of bank statement income that will accept either an expense ratio letter or a prepared profit and loss statement from an accountant or CPA. This secondary calculation will be considered more aggressive than that of the standardized bank statement calculation and will carry higher interest rates.

Many lenders are not as experienced with underwriting these kinds of loans. In fact, many banks and credit unions choose not to offer these types of loans. We are experts on this subject and would be happy to answer any questions you have.

Featured Transactions

Real Estate Agent

  • 12-Month Bank Statement on Investment Property Duplex
  • Purchase Price $2,035,000
  • 30% Down Payment
  • Loan Amount $1,424,500 | 30yr Fixed Only
  • LTV 70%

Attorney

  • 12-Month Bank Statement, Rate & Term Refinance
  • Consolidation of a Hard Money Second
  • Loan Amount $1,999,000 | 30yr Fixed Fully Amortized
  • LTV 59.9%

Owner of a Crossfit Gym

  • 12-Month Bank Statement, Purchase of an Owner-Occupied Property
  • Purchase Price $871,250
  • 15% Down payment
  • Loan Amount 1,025,000 | 30yr Fixed Fully Amortized
  • LTV 85%

It’s a Team Effort

We like to think outside the box. See which of our Signature Select products might be the right fit for you.

Have a Question? Let’s connect!

Every mortgage situation has a solution unique to you. Schedule a quick phone call or zoom. Leave your details and we’ll get back to you ASAP.

Chad Baker, CrossCountry Mortgage   
NMLS# 329451 | CCM NMLS# 3029