Self-Employed & Non-QM
Mortgages for self-employed borrowers
Business owners often earn more than their tax returns show. Non-QM programs let us qualify you on 12 or 24 months of bank statements, 1099s, or assets instead.
Key facts
- Available in
- New York, New Jersey, Florida, Pennsylvania
- Income options
- 12 or 24 months bank statements, 1099, P&L, asset depletion
- Down payment
- Typically 10-20%+
- Property types
- 1-4 family, condos, some co-ops
- Trade-off
- Higher rates than agency loans, more flexibility
Who it's for
- Business owners and 1099 contractors
- Borrowers with recent credit events
- High-asset borrowers with modest reported income
- Buyers of non-warrantable condos
Non-QM is not subprime. These are fully documented loans that simply document income differently. For a restaurant owner, contractor or driver whose write-offs shrink taxable income, a bank statement loan can be the difference between a yes and a no.
Many borrowers start in non-QM and refinance into a conventional loan once two years of tax returns support it. We plan for that exit from the start.
Popular in Brooklyn
Manhattan Beach, Borough Park, Williamsburg, Brooklyn Heights & Downtown
Questions
Is a bank statement loan more expensive?
Usually somewhat, because it sits outside Fannie Mae and Freddie Mac guidelines. The gap depends on credit, down payment and documentation.
How is income calculated from statements?
Lenders average deposits over 12 or 24 months and apply an expense factor, often based on your business type or a CPA letter.
Can I refinance later?
Yes. Many clients refinance into a conventional loan once tax returns support the income.
Questions about Self-Employed & Non-QM?
A licensed loan officer will walk you through the numbers, usually the same day.