Mortgage options built around how self-employed people actually earn money.
Self-employed income doesn't always fit traditional lending rules. We use different qualifying methods depending on how your income actually shows up — your job is to recognize yourself in the list below; ours is to model the numbers.
If this sounds like you, here's the likely path
Most Arizona self-employed borrowers fall into one of these patterns. Pick the row that fits — credit-score and down-payment specifics come during the consultation.
| If this sounds like you… | Possible solution |
|---|---|
| Your tax returns show low income because of write-offs | Bank Statement Loan |
| Your business deposits are strong but tax returns are inconsistent — and your CPA keeps clean monthly books | Profit-and-Loss Program |
| You're paid mainly through 1099 income | 1099 Loan |
| You're a W-2 employee whose paystubs and tax documentation are messy | Alternative Employment Verification |
| You have strong liquid assets but lower reported income | Asset-Based Qualifying |
| You have substantial liquid assets and prefer not to use income at all | Qualify Using Liquid Assets |
| You're buying an investment property and want the property's rent to qualify | Investor / Rental Loan |
Common worries — handled
- Being self-employed does not automatically disqualify you. The lenders we work with specialize in self-employed files; that's their normal underwriting, not an exception.
- Many of our borrowers qualified after being declined elsewhere. A "no" from a traditional bank often means "we couldn't read your income with our rulebook" — not that the income isn't real.
- Traditional underwriting doesn't always reflect real income. Profit-and-loss statements, bank deposits, contracts, and assets all tell parts of the story tax returns leave out.
Typical program guidelines
Ranges below are indicative. The specifics depend on your credit score, loan-to-value, reserves, and property type — and the exception path for your file might be cleaner than the table shows. We model the actual numbers for your situation on the consult.
Expand: credit-score floors and down-payment ranges by program
| Program | Typical FICO floor | Typical down payment |
|---|---|---|
| Bank Statement | 620 | 10–20% |
| Profit-and-Loss | 660 | 15–25% |
| 1099 | 660 | 15–25% |
| Alternative Employment Verification | 660 | 15–25% |
| Asset-Based Qualifying | 680 | 15–25% |
| Qualify Using Liquid Assets | 680 | 25–30% |
| Investor / Rental | 660 | 20–25% |
Lower credit scores and higher loan-to-value typically increase the rate or reserves required. Exceptions exist on most of these — don't self-disqualify based on the table alone.
Common questions
I was declined by a bank. Can this still work?
Often yes. Being self-employed does not automatically disqualify you — many borrowers qualify after being declined elsewhere because the bank's underwriting rules didn't fit how their income actually shows up. The lenders we work with read profit-and-loss statements, bank deposits, and 1099 income as normal underwriting, not exceptions.
Will this hurt my interest rate?
Pricing varies by credit, LTV, reserves, property type, and program. The real comparison is usually pricing vs. not buying the house at all. Many clients refinance into conventional later once tax returns catch up. We quote your actual rate after reviewing your file.
How much higher are these rates really?
Pricing is file-specific. Stronger credit and more down payment narrow the premium over conventional; weaker credit and lower down widens it. We quote your actual rate during the consult — not from a generic range.
Do I need two full years self-employed?
Not always. Several programs accept one year of self-employment history. If your business is brand new, qualifying through liquid assets skips the income test entirely.
Can I combine W-2 and self-employed income?
Yes. Many of our files use a co-borrower's W-2 income alongside bank-statement self-employed income, or asset-based qualifying that fills the gap between W-2 income and what you actually need to qualify.
Can I use business funds for reserves?
Often yes, depending on the program and the ownership structure. Reserves are usually shown through liquid accounts — personal or business — and most lenders accept business deposits when ownership is documented.
Are these loans safe and legitimate?
Yes. These are first mortgages from federally regulated lenders, just with different qualifying methods than W-2-only banks use. The lenders we work with are well-capitalized, follow ATR (Ability-to-Repay) standards, and report to credit bureaus exactly like conventional loans.
Will this affect refinancing later?
No. The loan is a normal first mortgage on your home. When your tax returns or qualifying profile improves, you refinance into conventional like any other borrower — at conventional pricing.
Do you do investment-property and second-home loans?
Yes. Most programs allow second home and non-owner-occupied. The Investor / Rental Loan is the dedicated investor product, but bank statement and asset programs also work for second homes and investor purchases at adjusted loan-to-value.
Stop fighting your tax return.
Tell us how your income actually works. We'll tell you which mortgage path may fit best — without the traditional-bank runaround.