Self-employed borrowers
Self-employed borrowers often qualify on their tax returns like anyone else. When deductions make those returns understate what you earn, some lenders document income from bank statements or other records instead, usually at a higher cost.
Business owners, freelancers and contractors whose tax returns do not show the full picture of what they earn.
What a lender will ask for
- An established record of self-employment.
- Business or personal bank statements, or a profit and loss statement, depending on the lender.
- A larger down payment than a conventional loan usually asks for.
- A credit history the lender reviews.
- Evidence the business is active, such as a business licence or a letter from your accountant.
What it offers
- A way to qualify on what the business actually brings in, rather than the figure left after deductions.
- We check first whether a conventional loan works on your returns, because it usually costs less.
- Available for primary homes, second homes and investment property, depending on the lender.
What to weigh up
- Rates and fees are usually higher than on a conventional loan.
- These loans sit outside the standard guidelines, so terms vary widely from lender to lender.
- Some carry a prepayment penalty.
- They fall outside the qualified mortgage rules that most home loans follow, so read the terms closely and ask us about anything unclear.
Related loan programs
Start with a pre‑qualification request
Tell us what you want to do and where, and we come back with options compared across multiple wholesale lenders. A pre-qualification request starts it, and nothing is a commitment until a lender has reviewed your file.