For business owners, freelancers, and 1099 earners whose tax returns understate what they make.
Your CPA does their job, so your taxable income looks smaller than what you actually earn. A traditional lender reads that number and says no.
Same process no matter which program you land in.
Multiple documentation paths to get you qualified.
Find the row that describes how you actually get paid. That’s your program.
| If this is you… | Your program | What you send | Tax returns? | Typical min. down |
|---|---|---|---|---|
| Deposits land in a business account | Bank Statement | 12 or 24 months of statements | No | 10–15% |
| You get 1099s from clients | 1099 Loan | 1–2 years of 1099 forms | No | 10–15% |
| Your CPA keeps clean books | P&L Only | A CPA-prepared P&L | No | 10–20% |
| Most of your wealth sits in accounts | Asset Utilization | Asset statements | No | 20–30% |
| Your returns actually look good | Full Doc | 2 years of returns | Yes | 3–5% |
The most common self-employed program, and usually the first one to check.
Real example. A Silver Lake restaurant owner banks $60,000 a month. A 50% expense factor leaves $30,000 a month in qualifying income — even though his tax return showed $68,000 for the whole year.
Full detail, including personal vs. business statements and the mistakes that cost people the loan: Bank Statement Loans in Los Angeles.
The simplest one, if your clients send you 1099s.
Real example. A Burbank editor with $210,000 in 1099s across three studios qualified on the forms alone. His tax return, after equipment and mileage write-offs, showed far less.
Best for contractors, real estate agents, insurance agents, and freelancers who are paid by a handful of clients rather than lots of small customers.
The lightest paperwork of any program — one document instead of two years of statements.
Real example. A Pasadena agency owner with a dozen accounts had messy deposit patterns but immaculate books. A P&L showing $340,000 of net profit qualified her cleanly where averaging deposits would have been a headache.
Full detail on documentation, advantages, and the trade-offs: P&L Only Mortgages in Los Angeles.
For when the money is already made and sitting in an account.
Real example. A founder who sold her company had $3.6 million in a brokerage account and no W-2. Divided over 360 months, that supported $10,000 a month in qualifying income.
Full detail, including which assets count and how they’re discounted: Asset Depletion Mortgages in Los Angeles.
Not a separate program so much as a size. In Los Angeles, self-employed and jumbo go together constantly.
Real example. A Studio City producer used 24 months of personal statements to buy at $1.85 million. Averaging two full years smoothed out the months between projects.
Where jumbo begins and what it takes: Jumbo Loans in Los Angeles.
Illustrative examples of how self-employed buyers qualified. Numbers are examples, not quotes.
Tax return showed $68,000. Business deposits averaged $60,000 a month. Bank statement loan qualified him on cash flow.
Paid by three studios on 1099s. Used the forms directly instead of a tax return dragged down by equipment write-offs.
Deposits were irregular but the books were spotless. One CPA-prepared P&L replaced two years of statements.
No job, no W-2, and no interest in getting one. $3.6 million in a brokerage account became qualifying income instead.
The five Derek hears most — and the rest below them.
Yes. Five programs are built for it, and four of them never ask for a tax return. The only real question is which one matches how you get paid.
Deposits in a business account point to a bank statement loan. 1099 forms point to a 1099 loan. Clean books and a CPA point to a P&L only loan. A large investment account points to asset utilization. If your tax returns actually look strong, take the full-doc conventional loan — it prices best.
Two years is the standard and opens the most programs. Some lenders allow one year if you worked in the same field before going out on your own.
Usually somewhat higher than a full-doc conventional loan, because income is verified in a more flexible way. How much higher depends on your credit, down payment, and program. Plenty of buyers use one of these loans to buy now and refinance into a conventional loan later. Check Today’s Rates to see where pricing sits.
Most programs start around 10% to 15% down on a home you’ll live in. Asset utilization usually starts at 20% to 30%, and investment property at 20% to 25%.
Yes, and it’s routine in Los Angeles. Self-employed jumbo loans reach $3 million and beyond depending on credit, down payment, and reserves.
Yes. Every program here works for buying, for lowering your rate, and for pulling cash out of your equity.
A 24-month average often absorbs one weak stretch better than a 12-month average. If an entire year was down, a P&L or asset utilization program may fit better than bank statements.
Only your ownership percentage counts. If you own half the business, roughly half of the deposits or profit are attributed to you.
Recent bank statements, 1099s, or a CPA-prepared P&L. It’s worth a short conversation before you send anything, so you send the right documents for the right program. Get a free income analysis.
Go deeper on a program, or run your own numbers.
Send your business type, years self-employed, rough income, and target price. You’ll get the right program and a real number back — no application, no credit pull.