Can I get a mortgage if I'm self-employed and my tax returns show low income?

Why do self-employed people get turned down?

Regular loans qualify you on your taxable income, and good tax planning lowers it. Your business may be doing great, but after write-offs your tax return says you earn far less. Non-QM loans fix that by looking at how money actually comes in.

What kinds of Non-QM loans are there?

Loan	How we verify income	Good fit for
Bank statement	12 or 24 months of personal or business bank deposits	Business owners and self-employed borrowers with big write-offs
1099	Your 1099s instead of full tax returns	Independent contractors, gig and commission earners
DSCR (investor)	The property's rent covers the payment; no personal income documents	Real estate investors buying or refinancing rentals

These work for purchases and refinances, including cash-out.

What does a Non-QM loan cost?

I'll be straight with you:

• Higher rates than conventional loans, because the loans can't be sold to Fannie Mae or Freddie Mac.
• Bigger down payment: typically 10% to 20% or more, depending on the program and your credit.
• Prepayment penalties are common on DSCR investor loans (not usually on your own home). I'll show you the terms and the options to avoid one.
• Closing costs: commonly 2% to 5% of the loan amount, plus any points you choose.

Many borrowers use Non-QM to get into the right property now, then refinance into a conventional loan later once their tax returns catch up.

What do I need to apply?

• Bank statements (12 or 24 months) or 1099s, depending on the program.
• Proof you've been self-employed for about two years (a business license, CPA letter, or similar).
• Credit and assets: requirements vary by program; I'll tell you where you stand before a hard credit pull.
• For DSCR: a lease or a rent estimate from the appraiser.

Example scenario (illustrative)

A general contractor in Austin deposits about $22,000 a month into his business account, but after write-offs his tax returns show about $60,000 a year. A conventional lender turned him down. With a 24-month bank statement loan and 15% down, he qualifies on his real deposits and buys the home his family needs.

Our take

If you're self-employed, don't let your tax returns talk you out of owning a home. We're the direct lender on Non-QM, so we can look at your real business. I'll show you what it costs compared with conventional, and your plan to refinance down the road.