You write off too much on taxes
Your Schedule C net income looks small because you’re smart with deductions. Traditional lenders use your taxable income, not your real cash flow.
Bank Statement loans →
The Arizona Self-Employed Borrower Guide
When tax returns don’t tell the whole story, we use a different playbook.
Arizona mortgages built for self-employed borrowers who’ve been turned down by traditional banks. You’re not a bad borrower — you’re just a W-2 system trying to read a 1099 income profile. We use seven Non-QM alt-doc methods to qualify you on the income you actually earn.
7Alt-doc methods
1 yrBusiness history minimum
49States licensed
Licensed in Arizona · NMLS #173855 · Equal Opportunity Lender
Why traditional lenders tell self-employed borrowers no
The three reasons a self-employed borrower gets declined — and the exact Non-QM tool that solves each one.
Good income, not enough on paper
You make real money but your tax return doesn’t reflect it. We’ll qualify you from deposits, a CPA-prepared P&L, or your 1099s — not your 1040.
P&L Only loans →New business, short history
Banks want 2 full years of self-employment history. We can qualify with a 1-year tax return, 12-month bank statements, or use your liquid assets directly.
Asset Qualifier →
The Program Menu
Seven ways to qualify a self-employed Arizona borrower
If your CPA filed it, there’s probably a way to use it. Each program links to a deep dive with eligibility, rates context, and FAQ.
| Program | What we use to qualify | Best for |
|---|---|---|
| Bank Statement | 12 or 24 months of personal or business bank deposits | Heavy tax write-offs; cash flow is the story |
| P&L Only | CPA- or tax-preparer-prepared P&L (12 or 24 months) | Clean books but light tax returns |
| 1099 Only | Most recent 1099(s) + 60 days of bank statements | Contractors and commission earners |
| WVOE | Written Verification of Employment from a third party | W-2 employees whose documentation is messy |
| Asset Utilization | Liquid assets converted to monthly qualifying income | Wealthy borrowers with low reported income |
| Asset Qualifier (ATR In Full) | Enough liquid assets to cover loan + closing — no income | Retired, between businesses, or income-privacy preference |
| DSCR | Property’s rent covers its mortgage payment — no personal income needed | Real-estate investors and portfolio landlords |
How it works
From call to close, five steps.
- 1
Discovery
20-minute call to map your income sources, reserves, credit profile, and target purchase.
- 2
Pick the path
We match you to the alt-doc program that qualifies you on the income you actually earn — not the taxable income left after deductions.
- 3
Document prep
You send bank statements, P&L, 1099s, or an asset statement. We build the underwriting file.
- 4
Pre-approval
Clean, non-contingent pre-approval letter you can write offers with.
- 5
Close
Funded on the Non-QM program that fits — usually 30–45 days, sometimes faster.
Why work with us
Product depth that general mortgage brokers don’t have.
Cornerstone First Mortgage is a full-service mortgage bank, not a retail shop with one or two Non-QM outlets. We lend, we broker, and we underwrite and fund in-house — which matters in this space, because alt-doc files need an underwriter who knows how to read a P&L.
- Multiple Non-QM investors: Acra, LoanStream, NewFi, NQM Funding, OnslowBay, eRESI, MaxEx, AHL — among others.
- Seven alt-doc programs under one roof.
- In-house underwriting — your loan officer talks to the underwriter.
- Equal Opportunity Lender.
My CPA’s too good at his job — my tax returns looked like I was barely making minimum wage. Mike used 24 months of business bank statements and I qualified for exactly the house I wanted. Closed in 32 days.
J.R. — Scottsdale, AZ · E-commerce owner
FAQ
Common questions from self-employed borrowers
I’m self-employed and was told my tax return income is too low. Now what?
You’re exactly who Non-QM alt-doc loans are built for. Instead of using the bottom line of your Schedule C, we qualify from bank deposits, a CPA-prepared P&L, your 1099s, or your liquid assets. The income that shows up in deposits is real income, even when the tax return doesn’t reflect it.
My business is only 1 year old. Can I still qualify?
Yes, in multiple ways. Some of our programs allow 1 year of self-employment history (instead of the usual 2). If your business is brand new, an Asset Qualifier loan skips income qualification entirely — you qualify on liquid assets sufficient to cover the loan.
What credit score do I need?
Most Non-QM programs start at a FICO of 660, with some programs going as low as 620. The tradeoff for lower scores is typically a higher down payment or reserves requirement. We’ll model the exact pricing by program in your consult.
How much do I need for a down payment?
Program- and FICO-dependent. Bank statement and P&L loans typically want 10–20% down. Asset Qualifier typically wants 25%+ down because there’s no income qualification. DSCR investor loans often allow 20–25% down.
Are Non-QM rates much higher than conventional?
Non-QM pricing is a premium over conventional — usually 0.75%–2.00% higher depending on program, FICO, LTV, and reserves. The real comparison isn’t Non-QM vs. conventional, it’s Non-QM vs. not buying the house at all. Many clients refinance into conventional later once their tax returns catch up.
Do you work across Arizona?
Yes — statewide under Arizona Mortgage Brokers License #0910407. Primary metros: Phoenix, Scottsdale, Mesa, Tempe, Chandler, Gilbert, Glendale, Tucson, Flagstaff, Prescott. Cornerstone is also licensed in 49 states for out-of-state moves into Arizona.
Ready to see which program fits?
Start the application with us. Twenty minutes to pre-approval when the numbers line up — no wasted paperwork, no traditional-bank runaround.