A Bank Statement Mortgage helps self-employed workers find home financing. We offer solutions that do not require tax returns and have flexible ways to qualify for your next home purchase or mortgage refinance.
Get Your Self-Employed
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Your Go-To Mortgage Lender For Self Employed Workers
- No Tax Returns, Flexible Income Documentation
- Use 12/24 Month Business or Personal Bank Statements
- Loan Terms Available that Lower Your Monthly Payments
- First Time Home Buyers Welcome
What is a Self-Employed Home Loan?
A Self-Employed Mortgage is a type of home loan that self-employed people can qualify for without having to submit tax returns. Many self-employed workers and small business owners take advantage of tax code benefits. This means their tax returns may not always accurately reflect their yearly earnings. Bank Statement Mortgages are designed to solve this problem for self-employed borrowers.
Get In Touch with a Newfi Senior Loan Advisor Today!
Call or connect with one of our Senior Loan Advisors today about your self-employed mortgage options.
Who Benefits from a Bank Statement Mortgage?
- Self-Employed Borrowers
- Small Business Owners
- Gig Workers
- Contractors
- Freelancers
3000
Customers Helped
1,400
Reviews Averaging 4.88/5 Stars
40
Lending in 40 States
Newfi's Self-Employed Mortgage Requirements
- Minimum of 12 Months of Business or Personal Bank Statements or,
- CPA letter, 1099 Income, or W2 Income from the Previous 1 to 2 Years
- Minimum of 2 Years of Self-Employment History
- Credit Scores as Low as 620
- Down Payments of at Least 10%
Benefits of a Bank Statement Mortgage
No Tax Returns Required
Bank Statement Mortgages allow self-employed borrowers to submit the income documentation that makes sense for their situation. That means there are no tax return requirements for a self-employed mortgage.
Non-QM Loans May Offer More Flexibility
Self-Employed Mortgages are Non-QM options, which means these loans do not have qualifying guidelines that are set by the government. Non-QM lenders set their own requirements.
Purchase or Refinance Solutions
Self-employed borrowers can use a Bank Statement Mortgage to purchase a home or refinance. At Newfi, self-employed borrowers can also use a Self-Employed Mortgage for a Rate & Term or Cash Out Refinance.
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Frequently Asked Questions
How Will My Self-Employed Income be Calculated?
Calculating self-employed income for a mortgage is based on your unique situation. We can combine W-2, 1099, and Bank Statements to calculate your monthly income. When looking at your business or personal bank statements, we will review either 1 or 2 years of documentation and use our quick calculator to identify your income.
When using a 1099, we will review your total income and take away an expense ratio of 10% (unless otherwise provided) and qualify you on the remaining 90% of income. If you have several forms of income, we will add all of the sources together to determine your average monthly income. We can consider most sources of income that have a two-year history!
What Documents Do I Need to Qualify for a Bank Statement Mortgage?
Self-employed borrowers will need to submit all required documentation to qualify, such as:
- Proof of Income
- 12 to 24 Months of Personal or Bank Statement
- 1099 Income
- W2 Income
- 2 Years of Self-Employed Work History
- If you co-own a business, you’ll need to document how much of the business you own.
- Borrower Financial Details
- Property Details
The income documentation you submit depends on how you make your money! If your tax returns don’t accurately reflect your yearly earnings, we can use other income sources.
How Much Self-Employment History Do I Need to Provide?
At Newfi, borrowers will be asked to provide 2 years of self-employment history to qualify. There may be exceptions available for borrowers with at least 1 year of self-employment history on a case-by-case basis if you have strong job experience, a history of other income earning, etc. Reach out to us for more information.
Can I Qualify for a Self-Employed Mortgage Using Multiple Income Sources?
Many people buying homes may need to combine sources of income to qualify for a mortgage. Traditionally, this means two or more tax returns. However, self-employed borrowers can qualify for a self-employed mortgage using multiple different sources of income documentation.
Can First Time Home Buyers Qualify for a Bank Statement Mortgage?
Yes, self-employed first time home buyers can qualify for a Bank Statement Mortgage. As long as you can submit all the required documentation and meet our specific lender requirements, you can qualify for a self-employed mortgage.
Can I Qualify for a Traditional Mortgage if I’m Self-Employed?
Yes! The biggest roadblock many self-employed borrowers face when qualifying for a traditional mortgage is income documentation requirements. However, if the borrowers W2 income accurately reflects their yearly earnings and they meet the other lending requirements, self-employed borrowers can qualify for a traditional mortgage.
Are Self-Employed Mortgages Backed by the Government?
Self-Employed Mortgages are Non-QM mortgage options. Non-QM loans are not backed by the government and do not have standardized guidelines. This means that Non-QM lenders, like Newfi, have qualifying requirements that vary depending on the lender you choose.
How Can I Get a Bank Statement Mortgage?
The first step toward getting a Bank Statement Mortgage connecting with a mortgage lender. Get in touch with one of Newfi’s Senior Loan Advisors and learn more about our Self-Employed Mortgages here or call us (888) 316-3934.
What are Rates for Self-Employed Borrowers?
Your exact mortgage rate depends on many factors: income calculation method, your down payment/equity position, credit score, loan term, income, and debt. Contact us to get a free quote on our competitive self-employed mortgage rates and learn how much you could qualify for!
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