Your Tax Returns Aren't Telling Your Real Story
If you're self-employed in Michigan and you've been told no by a lender, the system isn't broken. They're just using the wrong numbers. Here are four loan options built for how business owners actually earn.
The Four Loan Options
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Bank Statement Loan
Buy or Refinance With Bank Statements Instead of Tax Returns
If you're self-employed and your tax returns make your income look smaller than it really is, a Bank Statement Loan uses 12 to 24 months of your bank deposits to qualify you instead. Available for both home purchases and refinances. No tax returns. No W-2s.
Bank Statement HELOC
Pull Equity Out of Your Home Without Tax Returns
Most banks won't approve a self-employed borrower for a HELOC because of how tax returns look. Our Bank Statement HELOC uses your bank deposits to qualify, so you can access the equity in your home without giving up your low first mortgage rate. Built for business owners.
P&L Mortgage
Qualify With a CPA-Prepared Profit and Loss Statement
If your CPA prepares a profit and loss statement for your business, that's enough to qualify. No bank statements required. No tax returns. Ideal for business owners with clean financials and a CPA who knows the numbers.
1099 Mortgage
Qualify Using Your 1099 Income Directly
If you receive 1099 income as a contractor, freelancer, gig worker, or commission-based earner, this loan uses your 1099 income to qualify, no tax return adjustments needed. Built for the way independent earners actually get paid.
Who These Loans Are For
Self-employed mortgage and HELOC options are built for borrowers whose tax returns don't reflect their actual earning power. That includes:
- Business owners and S-Corp / LLC operators
- 1099 contractors, freelancers, and consultants
- Real estate professionals and commission-based earners
- Gig workers and independent contractors
- Doctors, lawyers, and other professionals running a private practice
- Restaurant owners, retail owners, and service-based business owners
- Investors with multiple income streams
If you've been told no by a lender because your tax returns don't show enough income, you're exactly the borrower these loans were created for.
Frequently Asked Questions
Can I get a mortgage if I'm self-employed?
Yes. Self-employed borrowers can qualify for mortgages through several loan programs designed specifically for non-traditional income, including bank statement loans, P&L mortgages, and 1099 mortgages. Each one uses a different qualification method instead of tax returns.
What if my tax returns show low income because of write-offs?
This is the most common reason self-employed borrowers get denied for traditional mortgages. The solution is to use a loan program that doesn't rely on tax returns at all. Bank statement loans use your actual bank deposits. P&L mortgages use your CPA-prepared profit and loss statement. 1099 mortgages use your 1099 income directly. Your write-offs no longer hurt your qualification.
How long do I need to be self-employed to qualify?
Most self-employed mortgage programs require at least 2 years of self-employment history, though some programs allow 1 year if you have a strong track record in your industry beforehand. Specific requirements vary by loan program.
Are interest rates higher on self-employed loans?
Rates on self-employed loan programs are typically slightly higher than conventional loans because they're considered non-QM (non-qualified mortgage) products. The trade-off is qualification flexibility. For many self-employed borrowers, the ability to qualify at all is worth more than the rate difference. We can run side-by-side comparisons during your strategy call.
How much down payment do I need?
Down payment requirements for self-employed loans typically start at 10% to 20%, depending on the program, your credit score, and the loan amount. We'll walk through your specific scenario during your call to give you exact numbers.
Can I get a HELOC if I'm self-employed?
Yes. The Bank Statement HELOC was specifically designed for self-employed borrowers who can't qualify through traditional HELOC programs because of how their tax returns look. It uses your bank deposits to qualify and lets you access the equity in your home without giving up your existing first mortgage.
Do I need a CPA-prepared profit and loss statement?
Only for the P&L mortgage program. The other three programs (Bank Statement Loan, Bank Statement HELOC, and 1099 Mortgage) don't require a CPA-prepared P&L. We can recommend the program that fits your documentation best during your strategy call.
Can I use these loans to buy an investment property?
Yes for some programs, with specific guidelines. Bank statement loans can often be used for investment properties depending on the lender's requirements. For pure investment property financing, a DSCR loan that qualifies based on the property's rental income is often a better fit. We can walk through the right structure for your scenario.
How fast can I close on a self-employed mortgage?
Closing timelines for self-employed mortgages are similar to conventional loans, typically 21 to 35 days depending on the program and how quickly we can collect the required documentation. In some cases we've closed in under 10 days.
Do you serve self-employed borrowers outside Michigan?
Mike's primary focus is Michigan, with the strongest presence in Oakland County and the greater Detroit metro area. NEO Home Loans is licensed in multiple states, so out-of-state scenarios can sometimes be supported. Reach out and we'll let you know if we can help.
Let's Talk About Your Scenario
If you're self-employed in Michigan and you want to know which loan option fits your situation, schedule a strategy call. No pressure. No documents. No credit pull. Just clarity on what's possible.
