Self-Employed & Alt Doc Loans
Self-Employed or 1099? We Help Borrowers Qualify Beyond Tax Returns
Bank statement programs and alternative documentation options for business owners, independent contractors, and commission-based earners. When tax returns understate your actual cash flow, we have options.
- 12 or 24 months bank statements accepted
- Business owners and sole proprietors
- 1099 contractors and commission earners
- No tax return requirement on select programs
- Personal and business bank statements reviewed
Options Home Loans LLC offers bank statement mortgage loans for self-employed borrowers, business owners, and 1099 contractors in California. Instead of tax returns, we use 12 or 24 months of bank deposits to calculate qualifying income. This is ideal when write-offs reduce your taxable income below what you actually earn. NMLS #2221613.
The Tax Return Problem for Self-Employed Borrowers
Self-employed borrowers often write off significant business expenses to reduce their taxable income — which is smart tax strategy, but it creates a problem when applying for a mortgage. Traditional loan programs use tax return income to qualify, and after deductions, that number may be far lower than your actual cash flow. This is where bank statement programs provide a real alternative.
How Bank Statement Programs Work
Instead of using tax returns, bank statement programs use 12 or 24 months of personal or business bank statements to calculate your qualifying income. Deposits are reviewed and averaged to establish a monthly income figure. This approach reflects what you actually earn and deposit — not what remains after business deductions.
Who These Programs Are Designed For
Bank statement and alternative documentation programs are designed for business owners, LLC and S-Corp operators, sole proprietors, independent contractors, freelancers, gig economy workers, and commission-based earners. If you have been self-employed for at least two years and have consistent deposit history, you may qualify.
Other Alternative Documentation Options
Beyond bank statements, there are additional programs that use asset depletion, profit and loss statements prepared by a CPA, or 1099 income averaging. Each program has different guidelines. Our team reviews your specific situation to identify which documentation approach gives you the strongest qualifying position.
You May Qualify If…
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