Why it can feel harder
Most traditional loans use your tax returns to calculate income. When you write off business expenses, your taxable income goes down, and so does the income a traditional lender can count. It's a common situation, and there are loan programs made for it.
Option 1: Traditional loan with tax returns
If your tax returns already show enough income, a conventional or jumbo loan may be the simplest choice. Usually you'll provide two years of personal and business returns.
Option 2: Bank statement loan
A bank statement loan uses your deposits over 12 or 24 months to determine your income. It's a great fit for business owners whose deposits are strong but whose tax returns show less.
Option 3: Profit and loss statement loan
Some programs let you qualify with a profit and loss statement, often prepared by a CPA or licensed tax preparer.
Option 4: DSCR loan for rental properties
Buying or refinancing a rental? A DSCR loan qualifies you based on the property's rental income, not your personal income.
Buying or tapping equity, the same options apply
Whether you're buying a home, refinancing, or getting a HELOC, the same income documentation choices are available.
How to prepare
- Gather your last 12 to 24 months of bank statements
- Keep business and personal accounts separate if you can
- Have a brief explanation ready for any large deposits
- If you have a P&L or recent tax returns, bring those too
Talk to someone who gets it
We've helped self-employed borrowers since 2005. We'll look at your full picture and recommend the option that fits best, not just the easiest one to process. Learn more on Self-Employed Loans.