Mortgages for the
Self-Employed
Being your own boss should not mean you cannot buy a home. Theós Financial specializes in bank statement loans, 1099 programs, and creative financing solutions designed specifically for entrepreneurs, freelancers, and business owners.
Last updated: March 2026
Why Self-Employed Borrowers
Struggle with Banks
If you are self-employed, you already know the frustration. You run a successful business, earn a good living, and pay your bills on time — but when you walk into a bank to apply for a mortgage, they look at your tax returns and say your income is too low.
The problem is not your income. The problem is how traditional lenders measure it. As a savvy business owner, you take advantage of every legal tax deduction available to you — depreciation, business expenses, home office deductions, vehicle expenses, and more. These deductions reduce your taxable income, which is exactly what they are supposed to do. But they also reduce the income that traditional lenders use to qualify you for a mortgage.
This creates a frustrating paradox: the better you are at managing your taxes, the harder it becomes to qualify for a mortgage through a traditional bank. Your actual cash flow and business revenue may be strong, but your adjusted gross income on your tax return tells a very different story.
This is where Theós Financial comes in. As a mortgage broker with access to over 200 wholesale lenders, we offer specialized programs designed specifically for self-employed borrowers — programs that look at your real income, not just your tax returns.
Programs Designed for
Self-Employed Borrowers
We offer multiple loan programs that use alternative documentation methods to qualify your real income. Here are the most popular options for self-employed professionals.
Bank Statement Loans
Instead of tax returns, we use 12 to 24 months of your personal or business bank statements to calculate your qualifying income. This method captures your actual cash flow and deposits, giving a much more accurate picture of your earning power. Bank statement loans are available for purchase, refinance, and cash-out transactions.
- 12 or 24 months of bank statements
- Personal or business accounts
- No tax returns required
- Loan amounts up to $3 million
1099 Income Programs
If you are an independent contractor who receives 1099 forms instead of W-2s, our 1099 income program allows us to use your 1099 earnings as qualifying income. This is ideal for gig workers, consultants, real estate agents, and other independent professionals.
- 1 or 2 years of 1099 forms
- No full tax return analysis
- Competitive rates
- Purchase and refinance
Profit & Loss Statement Loans
Some lenders will accept a CPA-prepared profit and loss statement as documentation of your business income. This can be an excellent option for borrowers whose bank statements alone do not tell the full story of their business revenue.
- CPA-prepared P&L statement
- Flexible documentation
- Available with bank statements
- Multiple lender options
Asset-Based Qualification
For borrowers with significant assets but irregular income, asset-based qualification uses your liquid assets to calculate a monthly income figure. This is popular with business owners who have accumulated wealth but show modest income on tax returns.
- Qualify using liquid assets
- No employment verification
- Ideal for high-net-worth borrowers
DSCR Loans (Investors)
If you are a self-employed real estate investor, DSCR (Debt Service Coverage Ratio) loans qualify you based on the rental income of the property — not your personal income at all. No tax returns, no employment verification, no income documentation.
- Qualify on rental income only
- No personal income docs
- Unlimited properties
- Close in LLC or entity name
How Tax Deductions
Affect Your Mortgage
Understanding why your tax returns do not reflect your true earning power — and what we can do about it.
Business Expense Deductions
Rent, supplies, software, equipment, marketing, travel — all of these legitimate business expenses reduce your taxable income. A business grossing $250,000 might show only $80,000 in net income after deductions. Traditional lenders use that $80,000 figure, not the $250,000.
Depreciation
Depreciation is a non-cash expense that reduces your taxable income without actually reducing your cash flow. Banks still deduct it from your qualifying income. A broker can work with lenders who add depreciation back, giving you credit for income you actually have.
Home Office Deduction
The home office deduction is a valuable tax benefit for self-employed professionals, but it further reduces the income figure that traditional lenders use. Bank statement programs bypass this entirely by looking at actual deposits.
The Bank Statement Solution
Bank statement loans solve this problem by measuring your income the way it should be measured — by looking at the actual money flowing into your accounts. Your deposits, not your deductions, determine your qualifying income.
Types of Self-Employed
Borrowers We Help
Our self-employed mortgage solutions are available to a wide range of professionals and business structures. Here are some of the borrowers we help every day:
- Small business owners (sole proprietors, LLCs, S-corps, C-corps)
- Freelancers and independent contractors
- Gig economy workers (rideshare drivers, delivery, etc.)
- Real estate agents and brokers
- Consultants and professional service providers
- Restaurant and retail owners
- Medical professionals with private practices
- Attorneys with their own firms
- Contractors and tradespeople
- E-commerce and online business owners
- Content creators and digital professionals
If you earn income outside of a traditional W-2 employment structure, we likely have a program that can help you qualify for a mortgage based on your real earning power.
Self-Employed?
Let Us Help.
Do not let tax deductions keep you from homeownership. Get a free rate quote or speak with one of our self-employed mortgage specialists today.