Take the Next
Step Today
Prefer to speak with someone? Call us at (702) 766-3744
Self-employed borrowers can get a mortgage in a few main ways. The cheapest is usually a conventional or FHA loan that uses your tax returns. If write-offs make your taxable income too small, a non-QM loan can use 12 or 24 months of bank statements, a profit-and-loss (P&L) statement, your 1099s or your assets instead. Conventional lenders generally want two years of self-employment and qualify you on net profit, not gross sales. The right path is the one that qualifies you at the lowest cost, and the only way to know is to run your numbers more than one way. iQRATE Mortgages (NMLS 1862492) does that for self-employed buyers in Texas, Nevada, California and Florida, and shops more than 100 lenders on complex deals.
5.0 stars from 87 reviews on Experience.com (October 2026) · Read David's reviews on Experience.com
Written by David Ghazaryan, Mortgage Broker (NMLS 1486726), iQRATE Mortgages (NMLS 1862492). Licensed in Nevada, California, Texas and Florida. Updated October 2026.
Are you self-employed, and have you lowered your taxable income with deductions? That's good tax planning. It's also the most common reason business owners hear "no" from a bank. You keep a long-term relationship with your CPA, and your loan officer belongs in that conversation too. My job is to figure your income every way the lenders will, starting with the cheapest loan you can get, and to show you the numbers before you shop for a home.
Get My Custom Rate Now · or call (702) 766-3744
These are typical rules, not a quote. Bank statement and DSCR terms are examples from lenders we place loans with, as of October 2026:
Down payments on non-QM programs are often 10–25% depending on the program and your credit. Not every lender offers every option. Terms change often and depend on credit, property and lender approval. This is not a rate quote or a commitment to lend.
Texas business owners, oil and gas contractors and real estate investors often use bank statement, 1099 and DSCR loans. Texas has no state income tax, but high property taxes raise your monthly payment, which lowers how much you qualify for. Texas homestead cash-out loans are capped at 80% of value under Section 50(a)(6) of the Texas Constitution, and that applies to non-QM cash-out too. Own more than one business? Lenders combine the qualifying income from each one, and a loss in one business counts against the others; see our guide to getting a Texas mortgage with multiple businesses. In Dallas and Plano, see our guide to bank statement loans in Dallas and Plano. See our Houston, Dallas and Texas mortgage broker pages.
How can business owners qualify for a mortgage in Nevada? The same ways as anywhere else: tax returns first, then bank statements, a P&L, 1099s or assets if write-offs shrink your income. What changes is the local mix of income. Nevada runs on income that's hard to document. Leisure and hospitality made up 302,500 of the Las Vegas metro's 1,184,600 jobs in August 2026, about one in four (U.S. Bureau of Labor Statistics), and around them work thousands of contractors, vendors, performers and drivers. Nevada has no state income tax, but the federal write-offs that lower your tax bill also lower the income a conventional lender can use. Convention and event income is often lumpy, so 12 vs. 24 months of history matters more here. A dealer, server or bartender on a W-2 isn't self-employed, and reported tips can usually count on a regular loan. In 2026, the conforming limit for a one-unit home in Clark County is $832,750 (FHFA); above that you're in jumbo territory, while bank statement programs at our lenders don't split loans that way. Gig and contract workers can start with our Nevada 1099 mortgage guide. See our Las Vegas and Nevada mortgage broker pages.
It is not that one loan option is better than another. Each one is different. But for most borrowers, a conventional or FHA loan based on tax returns costs less than any other option, so that's where we start.
Who counts as self-employed. Fannie Mae treats anyone who owns 25% or more of a business as self-employed. Independent contractors who file a Schedule C are self-employed too.
How long you need. Fannie Mae generally wants a two-year history. It can accept less if your most recent signed tax return shows a full 12 months of income from the current business and you earned the same or more before in the same line of work (Fannie Mae Selling Guide B3-3.5-01).
Net, not gross. Lenders qualify you on net profit after business expenses. Some non-cash deductions, like depreciation, can be added back, which helps. Income is usually averaged over two years. If it dropped from one year to the next, expect the lender to use the lower, more recent number.
When it works, use it. If your tax returns already show enough income, a conventional or FHA loan will usually cost less, so we run that math first.
When write-offs make your returns too small, the most common choice is a bank statement loan. The lender adds up 12 or 24 months of eligible deposits, takes out transfers and other deposits that aren't income, applies an expense factor to business accounts and divides by the number of months. At our lenders, personal statements can count up to 100% of eligible deposits, and loans can reach $5 million or more. A real iQRATE client, a home-based eyelash specialist in Las Vegas, had low net income on her tax returns because of her business expenses. Using 12 months of her personal statements, which showed regular Zelle payments from clients, her qualifying income came out much higher. The full guide, with worked examples, is on our bank statement loan page.
A P&L-only loan qualifies you on a profit-and-loss statement for your business, usually for the most recent 12 or 24 months, instead of tax returns. Lenders usually want the P&L prepared by a CPA, an enrolled agent or another licensed tax preparer, and some also ask for recent business bank statements to show the sales are real.
Who it fits: owners with well-kept books whose real expenses are lower than a standard bank statement expense factor assumes, and owners whose deposits are spread across several accounts.
Example (illustrative only, not a quote or offer). A Las Vegas salon owner's CPA-prepared P&L shows $132,000 in net profit for the last 12 months, or $11,000 a month. With $3,350 a month in total debts (the same as the example below), her debt-to-income ratio would be $3,350 ÷ $11,000 = 30.5%. A lender may check the P&L against her deposits and use the lower number. The full guide is on our P&L loans page.
A 1099 loan is made for independent contractors: rideshare and delivery drivers, entertainers, convention and production crews, real estate agents and consultants. Instead of the net profit on your Schedule C, the lender works from the totals on your 1099 forms. Some lenders use the full amount; others take off a flat expense factor. Most want one or two years of 1099s from the same line of work and proof that the income is still coming in.
Picture a Las Vegas audiovisual technician who works conventions as an independent contractor. This is an illustration, not a real client.
The home. He wants a home near the Las Vegas median single-family price of $470,000 (Las Vegas Realtors, September 2026) with 20% down:
Results:
Same person, same work, same house. On his tax returns, the payment is far out of reach. On his 1099s, the ratio drops to a level some programs accept. Each lender sets its own maximum. A bank statement loan might land somewhere else again, which is why we run every path.
If you have a lot of savings or investments but little monthly income, asset depletion turns those assets into a qualifying income number. It's common with retirees, early retirees and people who just sold a business.
Fannie Mae's version. For retirement and other employment-related assets, the lender takes out any early-withdrawal penalty and the money needed for the down payment, closing costs and reserves, then divides what's left by the loan term in months. Fannie Mae's own example: $350,000 ÷ 360 = $972.22 a month (Selling Guide B3-3.4-06).
Non-QM versions. Non-QM lenders write their own formulas. Many use shorter divisors, often somewhere between 60 and 360 months, which produce more income from the same assets. Which assets count, and at what percentage, also differs by lender.
Example (illustrative only, not a quote or offer). A retired couple moving to Henderson has $1,200,000 in eligible assets left after their down payment, closing costs and reserves. They want the same $2,950-a-month home from the example above and have no other debts.
These divisors show the range used in the market. They are not our lenders' terms. Social Security, pensions or other documented income can often be added on top.
A written verification of employment (WVOE) is a form your employer fills out to confirm your job, start date and pay. Conventional lenders already accept it as one way to document wages (Fannie Mae Form 1005). Some non-QM lenders offer a WVOE-only program that uses that form in place of pay stubs, W-2s and tax returns. It's for W-2 employees, not business owners. Lenders differ on whether employees of a family-owned business qualify.
You don't have to pick one income type. At our lenders, one spouse can qualify on self-employed income from bank statements while the other qualifies on W-2 income. A borrower who is self-employed and also works a separate W-2 job can use both. Generally, each income source needs a 2-year history.
On bank statement files, the problems we see most often are transfers between accounts and NSFs. From David: "Properly reviewing and analyzing bank statements before submission can help identify these issues early and avoid unnecessary underwriting problems."
Changing the income documents doesn't change the rest of underwriting: credit score and history, debt-to-income ratio, down payment and reserves from documented funds, the appraisal, and proof the business exists and that you own it. For a home you'll live in, the lender must make a good-faith decision that you can repay under the federal ability-to-repay rule. That rule accepts tax returns, bank records and other third-party records as proof of income. Different documents don't mean "no documents."
We don't post rates here; pricing changes daily, and you'll know your rate once it's locked. On a conventional or FHA loan, being self-employed doesn't change your price by itself. Non-QM programs usually cost more. At our lenders, a bank statement loan is about 0.5% higher than conventional, depending on the lender.
Prepayment penalties. On a home you live in, federal rules generally don't allow a prepayment penalty on a non-QM loan, so a later refinance stays open. On investment properties, bank statement borrowers at our lenders can choose a 1- to 5-year prepayment penalty or none; the longer the penalty, the better the rate.
Plan your exit. Many owners use a non-QM loan now and refinance into a conventional loan once two years of tax returns show stronger income. We'll tell you if that's realistic. See our refinance page.
California's high prices push many self-employed loans into jumbo sizes. Entertainment workers, tech contractors and small-business owners often use bank statement and P&L loans, and retirees and executives use asset depletion. High-cost counties such as Los Angeles and Orange have 2026 conforming limits up to $1,249,125, so some self-employed borrowers still fit a high-balance conforming loan once their income is documented the agency way. We check both. Property tax of about 1.1–1.3% and FAIR Plan insurance costs count in your payment, just as they do on any other loan. See our California mortgage broker page.
Florida has a lot of small-business owners, contractors and vacation-rental investors. Florida has no state income tax, but buyers pay doc stamps on the mortgage note ($0.35 per $100 of the loan) and intangible tax (0.2% of the loan), and those apply to non-QM loans too. Condo buyers sometimes need a non-QM lender when a building is non-warrantable. See our Florida mortgage broker page and closing costs by state.
Every method also needs ID, asset statements for the down payment and reserves, and the purchase contract or current mortgage statement.
Self-employed income is where lenders disagree the most. One lender's expense factor, asset divisor or P&L rule can qualify you for far more, or far less, than another's, and a bank can only show you its own rules. As a broker, we compare wholesale lenders on every file, more than 100 on complex deals. We run the conventional path first and the other options second, and bring you the one that fits. The smart borrower talks to a mortgage broker about more than the lowest rate: the right income method, the down payment and a real plan to refinance later.
From David: "The stronger the borrower's overall profile, the greater the financing options and potential loan amount."
If you have significant assets but limited income, also see our non-QM loans overview. If you're buying rentals, our real estate investors page covers financing and tax consults together.
Yes. Self-employed borrowers get conventional and FHA loans every day using tax returns. When write-offs make taxable income too low, non-QM programs can qualify you on bank statements, a P&L statement, 1099s or assets instead.
Start with your tax returns, because a conventional or FHA loan usually costs the least. If write-offs make your taxable income too low, non-QM programs can qualify you on 12 or 24 months of bank statements, a P&L statement, 1099s or assets instead. Nevada has no state income tax, but federal write-offs still lower the income a conventional lender can use.
Yes. Texas business owners, oil and gas contractors and real estate investors often use bank statement, 1099 and DSCR loans when tax returns don't show enough income. Texas has no state income tax, but high property taxes raise your monthly payment, which lowers how much you qualify for.
For a conventional loan, Fannie Mae generally wants two years. It can accept less if your latest tax return shows a full 12 months of self-employed income and you earned similar income before in the same line of work. For bank statement loans, our lenders generally require 2 years of self-employment. Other non-QM programs vary by lender.
They start with the net profit on your returns, not your gross sales, and usually average two years. Some non-cash deductions, like depreciation, can be added back. If your income dropped, lenders usually use the lower, more recent number.
A non-QM loan that qualifies you on a profit-and-loss statement for your business, usually for 12 or 24 months and prepared by a CPA, enrolled agent or other tax preparer, instead of tax returns. Some lenders also ask for recent business bank statements.
A non-QM loan for independent contractors that uses the totals on your 1099 forms instead of the net profit on your tax return. Some lenders use the full 1099 amount; others take off an expense factor. Most want one or two years of 1099s.
A loan that turns your eligible assets into a monthly income number. Fannie Mae's version divides net documented assets by the loan term in months, so $350,000 over 360 months is $972.22 a month. Non-QM lenders often use shorter divisors, which produce more income.
No. A WVOE loan uses a written verification of employment that your employer fills out, instead of pay stubs, W-2s and tax returns. It's for W-2 employees, not business owners, and not every lender offers it.
A bank statement loan figures income from 12 or 24 months of deposits, with an expense factor on business accounts. A P&L loan uses a profit-and-loss statement prepared by a tax professional. A P&L can work better when your books are strong and your real expenses are low.
Not because of self-employment alone. On a conventional or FHA loan, your price depends on credit, down payment, loan size and property, the same as a W-2 borrower. Non-QM programs usually cost more; at our lenders, a bank statement loan is about 0.5% higher than conventional, depending on the lender.
It depends on the loan. Non-QM programs often need 10–25% down. On bank statement loans at our lenders, purchase down payments run from 10% with a 700+ credit score to 30% with a 620 score.
Yes. One spouse can qualify on bank statement income while the other uses W-2 income, and one borrower can use both a business and a W-2 job. Generally, each income source needs a 2-year history.
Yes. Many owners refinance into a conventional loan once two years of tax returns show enough income. On a home you live in, non-QM loans generally don't carry a prepayment penalty.
Get My Custom Rate Now · or call (702) 766-3744
iQRATE Mortgages · NMLS 1862492 · 6360 S Rainbow Blvd Ste 101, Las Vegas, NV 89118 · Licensed in Nevada, California, Texas and Florida. David Ghazaryan, Mortgage Broker, NMLS 1486726. Verify us on NMLS Consumer Access. Equal Housing Opportunity. This is not a commitment to lend; programs, rates and terms vary by lender and change without notice. The examples on this page are illustrative, not rate quotes or loan offers. Nothing on this page is tax or legal advice; talk to your tax professional before changing how you file.
More: Bank statement loans · Non-QM loans · DSCR loans · Closing costs by state
