How to Get a Home Loan if You're Self-Employed
Mortgage solutions for self-employed borrowers, 1099 contractors, and business owners — using bank statements, 1099 income, or a CPA-prepared Profit & Loss statement instead of W-2s and tax returns.
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Key Features
No tax returns required
As low as 10% down payment
Two flexible programs: Bank Statement Loan and 1099 Mortgage Loan
Is a Self-Employed Mortgage Right for You?
A self-employed mortgage may be a good fit if you:
- Are self-employed, a 1099 contractor, gig worker, or small business owner
- Have strong bank deposits, 1099 income, or business profitability — but lower taxable income due to business write-offs
- Have a 700+ credit score and can put down at least 10%
- Want to qualify based on real cash flow, not adjusted gross income
A self-employed mortgage may not be the best option if:
- Qualify easily using traditional W-2 or salary income on tax returns
- Have inconsistent deposits with no clear income trend
- Need the absolute lowest interest rate available regardless of flexibility
- Have less than one year of self-employment history in your current field
A NASB loan officer can help you compare self-employed mortgage options with conventional, jumbo, or other non-QM products to determine what works best for your situation.
Bank Statement Loan
The Bank Statement Loan lets self-employed borrowers qualify based on personal or business bank deposits over a 12 or 24-month period, instead of tax returns or pay stubs. NASB applies an expense factor — either standard or CPA-verified — to calculate qualifying income from real cash flow.
Best for: Business owners, freelancers, and contractors whose tax returns understate actual income due to legitimate business deductions.
Requirements include:
- 12 consecutive months of bank statements from the same account
- 10% down payment required with mortgage insurance
- Up to 90% maximum Loan-To-Value (LTV)
- 700 minimum FICO credit score
- 50% maximum debt-to-income ratio (DTI)
- $200,000 minimum, $1,250,000 maximum loan amount1
- Escrow for taxes and insurance is required
- Two years of self-employment (one-year exception available in same field)
- 10% down with no MI option available at 740+ FICO3
1099 Mortgage Loan
The 1099 Mortgage Loan uses 100% of 1099-NEC income from the last 12 months, plus year-to-date documentation, to qualify independent contractors and freelancers — no tax returns required. This program is ideal for self-employed borrowers who maximize legitimate tax deductions, since it evaluates earning capacity before write-offs reduce taxable income.
Best for: Independent contractors, freelancers, and 1099 earners with consistent income but significant business deductions.
Requirements include:
- The last 12 months of 1099-NEC income
- Year-to-date documented income
- 100% of 1099 income is considered
- 700 minimum FICO credit score
- 20% minimum down payment
- Two-year history in the same line of work
- $200,000 minimum loan amount2
- 10% down payment with no mortgage insurance option available3
P&L Mortgage Loan
The P&L Mortgage Loan lets self-employed borrowers qualify using a CPA-prepared Profit & Loss statement instead of bank statements or tax returns. It's designed for business owners whose profitability is stronger than what their deposits or tax filings reflect — consolidating income into one professionally prepared document.
Best for: Business owners with high expense ratios, multiple revenue streams, or inconsistent deposits whose CPA-prepared P&L tells a stronger income story than bank statements alone.
Requirements include:
- 12-month CPA-prepared Profit & Loss statement5
- P&L ending date within 45 days of application
- Prepared by CPA, Tax Attorney, Enrolled Agent, or credentialed tax preparer
- 2 months most recent business bank statements
- Minimum credit score: 700
- Minimum down payment: 20%
- Maximum LTV: 80%
- Loan amount: $200,000 min / $832,750 max
- Two years of self-employment in same line of work
- 25% minimum ownership in qualifying business
- Primary residence and second home only
- Tax returns not required
When to consider a P&L loan instead of a bank statement loan:
- Your business expenses are high but profitability is strong
- Deposits are inconsistent, commingled, or seasonal
- You have multiple businesses or revenue streams
- Annual deposits exceed $5MM
- Your CPA already maintains a formal P&L — one document replaces 12+ months of statements
- You prefer not to submit tax returns
How Self-Employed Mortgage Loans Work
NASB offers two qualifying paths for self-employed borrowers, depending on how income is documented:
Example: Bank Statement Loan
A self-employed graphic designer deposits an average of $15,000 per month into a business account but reports a lower adjusted gross income on tax returns due to legitimate business deductions. Using 12 months of bank statements, NASB reviews consistent deposits, applies an appropriate expense factor, and calculates qualifying income based on actual cash flow — allowing the borrower to qualify for a mortgage without tax returns.
Example: 1099 Mortgage Loan
An independent IT consultant earns $180,000 in 1099-NEC income annually but writes off $60,000 in legitimate business expenses, leaving $120,000 on tax returns. Using NASB's 1099 Mortgage Loan, NASB qualifies the borrower on 100% of the $180,000 in 1099 income — significantly improving the loan amount available compared to conventional underwriting based on adjusted gross income.
Example: P&L Mortgage Loan
A restaurant owner generates $600,000 in annual gross revenue but carries high operating costs — food, staff, and equipment — resulting in moderate net income on paper and inconsistent month-to-month deposits due to seasonal cash flow. Rather than submitting 12 months of bank statements that don't tell a clean story, the owner's CPA prepares a 12-month Profit & Loss statement showing $210,000 in net income after allowable add-backs for depreciation and interest expense. NASB qualifies the borrower on that figure — no tax returns, no deposit-by-deposit analysis required. Income from two additional business entities owned by the same borrower is consolidated into the same P&L, giving underwriting a single, reviewable snapshot of the full picture.
All three approaches help borrowers whose earnings are strong but understated on tax filings due to common self-employment write-offs.
Video: How to Get a Home Loan if You're Self-Employed
Learn how self-employed borrowers can qualify for a mortgage without W-2s or pay stubs. Watch this video to explore the two flexible loan options that make homeownership possible for business owners, freelancers, and independent contractors.
What Makes NASB Different for Self-Employed Borrowers
NASB has been a federally chartered, FDIC-insured savings bank serving customers since 1927. As a portfolio lender on its non-QM products, NASB combines institutional stability with the underwriting flexibility self-employed borrowers need.
Advantages of working with NASB:
- Federally chartered, FDIC-insured savings bank since 1927
- Both Bank Statement Loan and 1099 Mortgage Loan options under one roof
- In-house underwriting, processing, and closing — we don't broker your loan
- Manual underwriting that evaluates the full picture of your business
- No prepayment penalties on either program
- Both 12-month and 24-month bank statement options
- 100% of 1099 income considered (no expense factor reduction)
- Personalized lending support from a single loan officer, start to finish
Self-employed mortgages from NASB are ideal for:
- Self-employed professionals
- Entrepreneurs
- Small business owners
- Realtors
- Independent Contractors
- Truck drivers
- Healthcare workers
- Consultants
- Freelancers
- Gig workers
Self-Employed Home Loans FAQs
What is a bank statement loan?
A bank statement loan is a mortgage that uses 12 or 24 months of bank statements to verify income, rather than tax returns, W-2s, or pay stubs. NASB's Bank Statement Loan offers loan amounts up to $1,250,000 and down payments as low as 10% for qualified self-employed borrowers.
Bank statement loans are designed for business owners, independent contractors, freelancers, and other self-employed borrowers whose tax returns understate their actual income due to legitimate business deductions. By looking at deposit activity rather than taxable income, the loan reflects what the borrower actually earns and can repay.
NASB is a federally chartered savings bank that has served customers since 1927. As a portfolio lender for its non-QM products, NASB holds many loans on its balance sheet rather than selling them to outside investors, which allows for more underwriting flexibility on complex self-employed files than lenders bound strictly by Fannie Mae or Freddie Mac guidelines.
What is the difference between a 1099 mortgage loan and a traditional mortgage?
A 1099 mortgage loan verifies income using 1099-NEC statements rather than W-2s, making it suitable for independent contractors, freelancers, and self-employed borrowers. NASB's 1099 Mortgage Loan uses the last 12 months of 1099-NEC income and year-to-date documentation, with 100% of 1099 income considered for qualification.
Traditional conventional mortgages require W-2s and tax returns and use net income after deductions. For self-employed borrowers who maximize legitimate tax write-offs, a 1099 program often supports a larger loan amount than conventional underwriting would allow.
Who is a bank statement loan best suited for?
NASB's Bank Statement Loan is designed for self-employed borrowers whose reported taxable income understates their actual earnings because of legitimate business deductions. Typical applicants include small business owners, independent contractors, gig workers, 1099 earners, freelancers, real estate professionals, and consultants with consistent monthly deposits.
If a borrower's bank deposits are steady but adjusted gross income is reduced by significant write-offs, this program may qualify the borrower for a larger loan than traditional underwriting would allow. Borrowers with at least two years of self-employment generally have the strongest applications, though one year may be acceptable in the same field with compensating factors.
Do I need a large down payment for a 1099 mortgage loan?
NASB's 1099 Mortgage Loan requires a minimum 20% down payment. Borrowers with a 740+ FICO score, no prior bankruptcy, and a 12-month housing history may qualify for a 10% down option without mortgage insurance.
Down payment requirements for non-QM products vary by credit score, loan amount, property type, and reserves. Investment properties typically require higher down payments than primary residences.
What makes NASB's Bank Statement Loan different?
NASB's Bank Statement Loan differs from many competitors in three ways: NASB is a direct lender (not a broker or wholesale lender), offers both 12-month and 24-month statement options on the same product, and underwrites manually rather than relying on automated systems.
NASB is a federally chartered savings bank that has served customers since 1927. As a portfolio lender for its non-QM programs, NASB holds many loans on its balance sheet rather than following Fannie Mae, Freddie Mac, or outside investor guidelines. This allows underwriters to evaluate the full context of a self-employed borrower's situation — including seasonal income, multiple business entities, and recent business changes — rather than rejecting files that don't fit a rigid template.
Loan amounts range from $200,000 to $1,250,000, with up to 90% LTV available.
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Can't Find What You Need?
NASB offers additional non-QM loan products that may better suit your unique situation.| Loan Type4 | Who is it for? | Min. Credit Score | Min. Loan Amount | Min. Down Payment |
|---|---|---|---|---|
| DSCR Loan | Real estate investors | 700 | $200,000 | 25% |
| Asset Depletion Loan | Borrowers using liquid assets to qualify | 700 | $200,000 | 20%3 |
| Jumbo Loan | Borrowers with home purchases above the conforming limit | 720 | $805,501 | 20% |
| Credit Event Loan | Helps individuals get a mortgage after credit event like bankruptcy | 620 | $200,000 | 30% |
Talk with one of our knowledgeable loan officers to discuss your circumstances and discover the mortgage solutions that work best for you. Call us at 888-956-2137.
How NASB Compares to Other Lenders for Self-Employed Borrowers
Self-employed borrowers comparing mortgage lenders should consider both program features and the lender behind them. While many non-QM lenders offer similar programs to NASB, NASB stands apart in three ways: it's a federally chartered, FDIC-insured savings bank rather than a mortgage company; it has served customers since 1927; and it has earned consistently high customer reviews across major platforms. Here's how that compares to leading non-QM lenders for self-employed borrowers.
| Feature | NASB | Angel Oak | Griffin Funding | CrossCountry Mortgage |
|---|---|---|---|---|
| Bank vs. Mortgage Company | ||||
| Federally chartered bank | ✓ | ✗ | ✗ | ✗ |
| FDIC-insured institution | ✓ | ✗ | ✗ | ✗ |
| Year established | 1927 | 2008 | 2013 | 2003 |
| Years serving customers | 95+ years | ~17 years | ~12 years | ~22 years |
| Direct Lending Advantage | ||||
| Direct lender (no broker layer) | ✓ | Wholesale & retail | ✓ | ✓ |
| Portfolio lender (loans held in-house) | ✓ | ✗ | ✗ | ✗ |
| In-house manual underwriting | ✓ | ✓ | Hybrid | ✓ |
| Industry-Standard Program Features | ||||
| Minimum down payment | 10% | 10% | 10% | 10% |
| Maximum LTV | 90% | 90% | 90% | 90% |
| Customer Trust & Reviews | ||||
| Zillow rating | 4.96 / 5.0 (1,605 reviews) | 5.0 / 5.0 (19 reviews) | 4.95 / 5.0 (99 reviews) | 4.97 / 5.0 (23,221 reviews) |
| WalletHub rating | 4.8 / 5.0 (1,703 reviews) | No rating | 4.7 / 5.0 (755 reviews) | 2.2 / 5.0 (185 reviews) |
| Business Insider rating | 4.62 / 5.0 | 3.67 / 5.0 | No rating | 4.37 / 5.0 |
Why self-employed borrowers choose NASB
As a federally chartered, FDIC-insured savings bank serving customers since 1927, NASB offers both Bank Statement Loans and 1099 Mortgage Loans designed for self-employed borrowers. NASB underwrites in-house, manually — real underwriters evaluate the full picture of your business rather than rejecting files that don't fit a rigid template. Because NASB is a portfolio lender that often holds loans on its own balance sheet, you're working with the institution that actually makes the decision — not a broker passing your file to an outside investor.
1Bank Statement Loans require a minimum $200,000 loan amount (exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas), a minimum credit score of 700, and a 10% down payment with approved mortgage insurance. Contact a NASB Loan Officer for more details on the specific areas and/or zip codes excluded. Not available in New York state, the Chicago or Baltimore metropolitan areas, and not available in all locations or for all property types. Loans subject to underwriting and eligibility criteria, and other factors. Your loan officer will provide you with more information regarding Bank Statement loans and what may work best for your situation.
21099 loans require a minimum 700 FICO score, a minimum loan amount of $200,000 (exceptions include mortgage products for properties located within the Greater Kansas City metro and surrounding areas), and a 20% down payment. A lower FICO score or down payment may be available with eligible compensating factors. Must have a two-year history in the same line of work. Contact a NASB Loan Officer for details on the excluded areas and/or zip codes. The product is not available in New York, the Chicago or Baltimore metropolitan areas and not in all locations or for all property types. Loans are subject to underwriting, eligibility criteria, and other factors. Your Loan Officer will provide more information regarding 1099 loans and what may work best for your situation.
310% minimum down payment with no mortgage insurance requires a minimum 740 credit score, no prior bankruptcy, and a 12-month housing history. Otherwise, borrowers need a minimum credit score of 700 and a 10% down payment with approved mortgage insurance.
4Additional eligibility criteria for each loan product may exist. Visit nasb.com for more information on each loan product type. Loans are subject to underwriting and eligibility criteria, and other factors. Your loan officer will provide you with more information regarding a specific loan and what may work best for your situation. The 1099 Loan, DSCR Loan, and Credit Event Home Loan products are not available in New York, the Chicago or Baltimore metropolitan areas and not in all locations or for all property types. Contact a NASB Loan Officer for more details on product eligibility, specific areas and/or zip codes excluded.
5P&L Mortgage Loans require a minimum loan amount of $[CONFIRM] and a [CONFIRM]% minimum down payment. A licensed CPA, Tax Attorney, Enrolled Agent, or credentialed paid tax preparer (PTIN) must prepare the Profit & Loss statement; NASB verifies preparer credentials prior to closing. The P&L statement must cover a minimum 12-month period with an ending date within 45 calendar days of the application date. At least one borrower must hold 25% or more ownership in the qualifying business, with a minimum two-year operating history. Eligible occupancy types are primary residence and second home only; investment properties are not eligible. Tax returns and 4506-C are not required when qualifying solely on P&L income. Business term debt with more than ten monthly payments remaining must be included in DTI. Not available in all locations or for all property types. Loans subject to underwriting approval and eligibility criteria. Contact a NASB loan officer for program details specific to your situation.
