Self-Employed Loans and Mortgages

Mortgage Financing for Self-Employed Borrowers & Non-Traditional Income

Self-employed? Business owner? Independent contractor? Traditional mortgage lenders often make it difficult for self-employed borrowers to qualify - requiring extensive tax returns that show minimal income after write-offs. At Anchor Mortgage, we specialize in alternative loan programs designed specifically for self-employed borrowers and those with non-traditional income.

Anchor Mortgage is a Direct Non-QM Lender with our own warehouse lines of credit. We underwrite, approve, and fund self-employed loans in-house - offering bank statement loans, asset depletion loans, and other Non-QM programs that traditional lenders don't offer.

The Self-Employed Challenge

The Problem:
You make great income, but your tax returns show minimal profit because you write off business expenses to reduce your tax liability. Traditional lenders only look at the bottom line of your tax returns - making it nearly impossible to qualify for the loan amount you deserve.

The Solution:
Non-QM (Non-Qualified Mortgage) loans use alternative methods to verify your income - like bank statements, asset depletion, or stated income. These programs look at your actual cash flow, not just what you report to the IRS.

Self-Employed Loan Programs

Bank Statement Loans

  • Qualify using 12-24 months of business or personal bank statements
  • We calculate income based on deposits, not tax returns
  • No W-2s or tax returns required
  • Perfect for business owners who write off expenses
  • Down payment as low as 10%

Asset Depletion Loans

  • Qualify using your liquid assets (savings, investments, retirement accounts)
  • Assets are divided over the loan term to calculate qualifying income
  • No employment or income verification needed
  • Ideal for retirees, investors, or high-net-worth individuals
  • Down payment typically 20-30%

P&L (Profit & Loss) Loans

  • Qualify using a CPA-prepared profit and loss statement
  • Only 1-2 years of business history required
  • No full tax returns needed
  • Great for established businesses with solid cash flow
  • Down payment 15-20%

1099 Income Loans

  • Qualify using your 1099 forms showing contract income
  • No business tax returns required
  • Perfect for independent contractors and gig workers
  • Down payment as low as 10%

DSCR Loans (Investment Properties)

  • Qualify based on the property's rental income, not your personal income
  • No income verification at all
  • Perfect for real estate investors
  • Down payment 20-25%

Who Benefits from Self-Employed Loans?

  • ✅ Business owners who write off expenses
  • ✅ Self-employed professionals (doctors, lawyers, consultants)
  • ✅ Independent contractors and freelancers
  • ✅ Real estate investors with multiple properties
  • ✅ Commission-based earners (realtors, sales professionals)
  • ✅ Gig economy workers (Uber, DoorDash, consultants)
  • ✅ Retirees with significant assets but limited W-2 income
  • ✅ Foreign nationals investing in U.S. real estate

Bank Statement Loan Details

Bank statement loans are the most popular Non-QM option for self-employed borrowers.

How It Works:

  • Provide 12-24 months of personal or business bank statements
  • We calculate your average monthly deposits
  • Apply an expense ratio (typically 25-50% depending on business type)
  • The result is your qualifying income

Example:
Average monthly deposits: $20,000
Business expense ratio: 50%
Qualifying monthly income: $10,000
Annual qualifying income: $120,000

Requirements:

  • Credit score: 660+ (680+ for best rates)
  • Down payment: 10-20% (20%+ avoids PMI)
  • Debt-to-income ratio: Maximum 43-50%
  • Reserves: 6-12 months of mortgage payments
  • Self-employment: 2+ years in same industry

Non-QM Loan Requirements

Requirements vary by program, but general guidelines include:

Credit Score: 620-680+ minimum (varies by program)
Down Payment: 10-30% depending on loan type and property
Reserves: 6-12 months of mortgage payments in savings
Property Types: Primary residence, second home, investment property
Loan Amounts: Up to $3 million+ depending on property and borrower profile

Benefits of Non-QM Loans

No Tax Return Requirements
Most Non-QM programs don't require tax returns - perfect for borrowers who minimize taxable income through business deductions.

Flexible Income Verification
Use bank statements, assets, P&L statements, or 1099s instead of W-2s and tax returns.

Higher Loan Amounts
Qualify for larger loans than you would with traditional lending based on your actual cash flow.

Investment Property Friendly
Non-QM programs are ideal for real estate investors who own multiple properties and can't qualify conventionally.

Fast Approval Process
Less documentation means faster underwriting and closing - typically 30-45 days.

Self-Employed Loan Process

Step 1: Determine Best Program
We'll review your income situation and recommend the best Non-QM program - bank statement, asset depletion, P&L, or other option.

Step 2: Gather Documentation
Depending on the program, you'll provide bank statements, asset statements, P&L, or 1099s. Much simpler than traditional loans.

Step 3: Pre-Approval
We'll calculate your qualifying income and issue a pre-approval letter showing how much you can borrow.

Step 4: Find Your Property
Work with your real estate agent to find a home. Non-QM loans work for primary residences, second homes, and investment properties.

Step 5: Underwriting & Closing
We underwrite your loan in-house with our Non-QM underwriting team. Most loans close in 30-45 days.

Common Self-Employed Loan Questions

What if I've only been self-employed for 1 year?
Most programs require 2 years of self-employment history, but exceptions can be made if you have extensive experience in the same industry as a W-2 employee before going self-employed.

Can I use both personal and business bank statements?
Yes, we can use either personal or business bank statements, or a combination of both depending on your situation.

Are interest rates higher with Non-QM loans?
Yes, typically 0.5%-2% higher than conventional loans due to increased risk. However, the ability to qualify makes it worth it for most self-employed borrowers.

Do I need perfect credit?
No, but 680+ credit score gets you the best rates. Scores as low as 620 can qualify with larger down payments and strong compensating factors.

Can I refinance with a Non-QM loan?
Absolutely. Many self-employed borrowers use Non-QM for cash-out refinances to access equity in their homes or investment properties.

What if my income fluctuates significantly?
Bank statement loans average your deposits over 12-24 months, smoothing out seasonal fluctuations. We look at the overall trend, not month-to-month variations.

Why Choose Anchor Mortgage for Self-Employed Loans?

Direct Non-QM Lender
We fund Non-QM loans with our own warehouse lines of credit. No waiting on third-party lenders or brokers.

Experience with Self-Employed Borrowers
We've helped hundreds of business owners, contractors, and self-employed professionals get approved when traditional lenders said no.

Multiple Non-QM Programs
We offer bank statement, asset depletion, P&L, DSCR, and other alternative programs - we'll find the best fit for your situation.

Fast Underwriting
Our in-house Non-QM underwriting team understands these programs and can close loans in 30-45 days.

Nationwide Lending
We finance self-employed borrowers in all 50 states - primary residences, second homes, and investment properties.

Competitive Rates
As a direct lender, we offer competitive Non-QM rates without broker markup.

Ready to Get Approved as a Self-Employed Borrower?

Stop letting your tax returns hold you back from homeownership or real estate investing. Non-QM loans look at your real income - not just what you report to the IRS.

Contact Dante Campanelli and the Anchor Mortgage team today:
📞 Call: 843-367-9900
📧 Email: info@anchormortgagellc.com
🌐 Apply Online: anchormortgagellc.com

Financing homes for self-employed borrowers, business owners, and non-traditional income earners nationwide.

Loan Types

  • Hard Money
  • Commercial
  • Refinance
  • Acquisition
  • Construction
  • Rehab/Renovation
  • Land Development
  • Bridge/Mezzanine
  • SBA/USDA