Self-Employed and Investor Loans
Self-employed? Your tax returns don't have to tell the whole story.
Business owners often write off enough to look like they earn far less than they do. I qualify you using the documents that show what your business actually brings in.
Pick your path
Buying or refinancing a rental property
DSCR loans qualify you on the property's rent, not your personal income.
- No tax returns
- No pay stubs or personal income verification
- How long you've been in business doesn't matter
- Close in your name or an LLC
Buying or refinancing the home you live in
Bank statement loans: Qualify using 6, 12 or 24 months of personal or business bank deposits.
P&L loans: Qualify with a profit and loss statement, typically prepared by a CPA or tax preparer, though we have alternatives.
Asset-based loans: Qualify using savings, investment, or retirement balances instead of income.
Tapping your home's equity
HELOCs and HELOANs (fixed home equity loans) are available using the same alternative documents: bank statements, P&L, or assets.
In business less than 2 years?
For rental properties, a DSCR loan doesn't look at your business history at all. For the home you live in, many programs want about 2 years of self-employment, but some accept less, especially if you worked in the same field before starting your business. Call me and we'll find out in one conversation which ones fit.
The honest tradeoff
These programs usually carry higher rates than a standard loan with full tax returns. For many business owners, that's still the better path, since writing off less to qualify can cost more in taxes. I'll show you both side by side so you can decide with real numbers.
What to have ready
- 12 to 24 months of bank statements (personal or business)
- Business license or CPA letter showing how long you've been in business
- For rentals: the lease or expected rent amount
- For asset-based: recent account statements
FAQ
Will checking my options hurt my credit?
No. We start with a soft pull.
Can I use business or personal bank statements?
Often either. It depends on the program and how your business is set up.
Can I refinance later into a standard loan?
Yes, once your tax returns support it, refinancing is an option worth reviewing.
Do you work with LLCs?
Yes, for investment properties.
How soon can I do a cash-out refinance on an investment property?
Some DSCR lenders allow it with little or no seasoning after you acquire the property or add someone to title. Guidelines vary by lender, so ask me what's available now.
You've built a business. Let's make it count when you buy.
Bill Black, Senior Mortgage Broker, NMLS #49242 | Northwest Funding Group Inc., Company NMLS #101770 | Equal Housing Opportunity
