/PROGRAM
Bank statement and 1099 mortgages
The write-offs your CPA told you to take are the same ones that sink a conventional approval. Full-doc underwriting reads adjusted net income off the return and sees a fraction of what you actually take home.
- Scope
- Available as a business-purpose loan in any state; the consumer version I originate in select states. Outside those states I can introduce you to a licensed colleague at NEXA Mortgage, LLC.
- Best if
- your deposits tell the truth your tax return doesn’t.
- Not for
- a W-2 borrower whose returns already show the whole picture.
- First step
- Send bank statements, 1099s, or a CPA-prepared P&L, whichever best reflects the business.
A Non-QM mortgage that qualifies self-employed, 1099 and business-owner borrowers on bank deposits, 1099 forms or a CPA-prepared profit and loss statement, instead of on tax-return net income.
Who a bank-statement loan is for
Established business owner
Five or more years in, healthy business balances, and a return that shows a fraction of real take-home.
1099 commission earner
Real estate, insurance or advisory income, no W-2 anywhere, swings month to month.
Multi-platform gig earner
Income spread across several 1099-NECs, or none at all under a platform’s issuing threshold.
Recently self-employed
Six to eighteen months out of a W-2 job, profitable and growing, but short of the standard two-year history.
Cash-heavy owner buying rentals
Real personal cash flow that the tax return understates, on a deal where the rent alone doesn’t quite carry it.
How a bank-statement loan works
- 01
Send bank statements, 1099s, or a CPA-prepared P&L, whichever best reflects the business.
- 02
Income is calculated from documented deposits or the P&L instead of tax-return net income.
- 03
This is still fully documented, underwritten lending. Ability-to-repay rules apply. It is not stated income.
- 04
I tell you which documentation path fits and what is eligible. Varies by scenario.
Questions about a bank-statement loan
I don’t want to reopen my tax returns with a lender.
You wouldn’t need to amend anything. This looks at bank deposits or a CPA-prepared P&L, not adjusted net income off the return.
My bank already denied me.
That’s usually a full-doc conventional underwriter. This is a different underwriting path. Worth a second look at your actual scenario before ruling it out.
Isn’t this a subprime loan from 2008?
No. Alt-doc today still means fully documented income, real bank deposits or a real CPA P&L, verified and underwritten through a licensed lender. It is not stated income, and terms vary by scenario.
My income varies a lot month to month.
The underwriting reads a broader deposit and 1099 history rather than one slow month. Variable income is what the program is built for.
I only have one year of 1099 income, not two.
Some files work with a shorter history depending on the overall picture. Eligibility varies by scenario. Worth reviewing your documentation before assuming no.
Related reading
All guides →How bank-statement underwriting turns deposits into qualifying income
If your CPA did their job, your tax return understates you. This is the documentation type built for that.
Myth: self-employed borrowers need two years of tax returns to qualify
For one lane of lending that is broadly true. It is not the only lane, and the returns are often the worst evidence of what a business actually earns.
Send this scenario
Tell me the property and the plan and I’ll come back with what’s eligible. Eligibility and terms vary by scenario.