Your write-offs are not the problem.
Banks read the bottom line of your tax return, which makes a healthy business look like low income. There are programs that qualify you on 12 or 24 months of bank statements, or on your 1099s, instead.
No tax returns required on most of these. Call (448) 202-7711.
Why good businesses get declined
A W2 employee hands over a pay stub and the income question is settled. When you own the business, the lender looks at your tax return after every deduction you legitimately took: vehicle, equipment, home office, travel, depreciation, and the rest.
Those deductions are the whole point of running your business well. They are also why a company clearing plenty of cash can show income that will not support a mortgage on paper.
The fix is not to file differently. The fix is to use a lender that measures your income a different way. That is what these programs do, and it is why this is one of the most common problems I solve.
Ways to qualify without tax returns
Different lenders measure self-employed income in very different ways. That variation is the opportunity.
Bank statement loans
Qualify on 12 or 24 months of deposits into your business or personal account. The lender uses your actual cash flow instead of the taxable income left after write-offs.
1099 loans
For contractors and commission earners. Income is calculated from your 1099s rather than from a full tax return with Schedule C deductions applied.
Profit and loss loans
Some lenders will qualify from a CPA-prepared P&L, sometimes with limited supporting documentation. Useful when deposits are scattered across accounts.
Asset depletion
If you are asset-rich but income-light on paper, qualifying income can be calculated from your liquid assets rather than from monthly earnings.
DSCR for investment property
Buying a rental? The property's rent can carry the loan with no personal income documentation at all. Nothing about your tax return enters the calculation.
Conventional, when it fits
If two years of returns actually support the purchase, conventional is usually the cheapest path. I check that first, because it often costs less than the alternatives.
How this goes
Show me how you get paid
Deposits, 1099s, K-1s, distributions, or a mix. How the money actually arrives determines which programs are open to you.
I price the routes side by side
Conventional if your returns support it, bank statement or 1099 if they do not. You see the real numbers on each rather than a pitch for one.
Close without changing your taxes
No amended returns, no abandoning deductions you are entitled to, no waiting two more years to try again.
Common questions
Why does my bank say I do not make enough? +
Because a traditional lender reads the bottom line of your tax return, after every deduction you legitimately took. Vehicle, equipment, home office, travel, depreciation, and the rest all reduce your taxable income. That is good tax strategy and terrible mortgage optics. A business clearing plenty of cash can look near broke on line 31 of a Schedule C.
Should I stop writing things off before I buy? +
Usually no, and I would want you talking to your CPA before you change anything. Paying thousands in extra tax to qualify for a mortgage is often a worse deal than using a program built for self-employed borrowers. Run the comparison before you change how you file.
How long do I need to be self-employed? +
Two years is the traditional benchmark, but it is not universal. Some programs allow twelve months of self-employment, particularly when you were in the same line of work as an employee beforehand. It is worth asking rather than assuming.
Do these programs cost more? +
Generally yes. Alternative documentation usually carries a somewhat higher rate than a fully documented conventional loan, because the lender takes on more uncertainty. The honest framing is that the comparison is not against a conventional loan you could get, it is against not buying at all. And you can often refinance later.
What do I actually need to provide? +
For a bank statement loan, typically 12 or 24 months of statements, a business license or CPA letter confirming your business exists, and the usual identification and asset documentation. Notably: no tax returns and no transcripts.
Who do I call with questions? +
Me, directly. Rich Preston at (448) 202-7711 or rich@prestonlending.com. Tell me how your income shows up and I will tell you which route fits.
You built the business. Let's get you the house.
Tell me how your income shows up and I will tell you which route fits, at no cost.
Bank statement, 1099, profit and loss, asset depletion, and DSCR programs are non-qualified mortgage products. Guidelines, documentation requirements, and pricing are set by individual lenders and vary significantly. These programs typically carry different terms than fully documented conventional financing. Nothing on this page is tax advice; consult your CPA before changing how you file. This page is for informational purposes and is not an offer or commitment to lend. All loans are subject to credit approval, income and asset verification, and property appraisal. Rich Preston, Branch Manager, NMLS 1735238. NEXA Lending, AZ Broker License 0944059, NMLS 1660690. Equal Housing Lender.