Self-Employed Borrowers
Business owners and entrepreneurs with real income and creative write-offs.
- NMLS #412470
- Equal Housing Lender
- STELLAR rated on Experience.com
- Serving borrowers nationwide
You run a business, so your tax return understates what you actually earn. We qualify you on the money that flows through your accounts — not the number your accountant worked hard to shrink.
What makes it work
Go deeper — guides from Pat
Self-Employed Borrowers, explained properly.
The write-off penalty, explained
Every good accountant minimizes your taxable income. Every conventional underwriter qualifies you on that same minimized number. That’s the trap: the deductions that save you thousands in April cost you hundreds of thousands in borrowing power when you apply for a mortgage. A business owner grossing $400K can show $90K on a Schedule C and get declined for a starter home. Self-employed lending exists to break that link — qualifying you on the money your business actually produces, not the number engineered for the IRS.
Three ways to document real income
Bank-statement programs total 12–24 months of deposits and apply an expense factor to business accounts — no tax returns at all. P&L programs qualify you on a profit-and-loss statement prepared by your CPA. And 1099 programs use your gross contractor income directly. In each case the underwriter is reading cash flow, not taxable income. I run your file through all the options and use whichever produces the strongest qualification — sometimes the difference between them is an entire price bracket.
What lenders look for in a self-employed file
Two years in business is the comfortable standard, but strong one-year files close regularly — especially with prior W-2 history in the same field. Deposits should tell a coherent story: consistent flow beats big-but-erratic spikes. Keep business and personal accounts reasonably separated in the months before applying, and expect the lender to verify the business exists through a license, CPA letter, or website. That’s largely it. No tax transcripts, no explaining every deduction — the whole point is that your business speaks for itself.
Sound like you? Then this is your program.
The established owner
Years of healthy revenue, aggressive write-offs, and a tax return that says “barely surviving.” Deposits tell the truth instead.
The freelancer & consultant
1099s from multiple clients, income that arrives in waves — averaged over 12–24 months into one qualifying number.
The new entrepreneur
Left the W-2 world recently and thriving — one strong year plus industry history can be enough.
The numbers, straight.
Not required on most programs
Bank statements, P&L, or 1099s
12–24 months
2 yrs standard, 1 yr possible
Often 10–20%
Personal or business
Flexible with strong cash flow
Ranges reflect typical scenarios and vary with the full file — they’re a starting point, not a quote or a commitment to lend. Pat will give you real numbers for your situation.
From first call to closing table.
Book a free call
Fifteen minutes with Pat. Your situation in plain English — no forms marathon, no obligation.
Get your real numbers
The program that fits, the terms you'd actually see, and a document list built for your file — not a generic checklist.
Close with confidence
Pat drives the file to the closing table and keeps you ahead of every deadline while you plan the move.
“What made my experience so stellar was Pat Villano. He is exceptional with prompt and clear communication. He works long hours to meet your needs. A rare find these days. Thank you, Pat!”
The questions everyone asks.
Whichever qualifies you strongest, and it’s rarely obvious in advance. I run the math on every option — personal statements, business statements with your industry’s expense factor, CPA-prepared P&L, or gross 1099s — and show you the comparison.
Regular business flow is what counts; a one-off transfer or asset sale usually gets excluded. That’s fine — the averaging is designed around your normal rhythm, and I’ll flag anything that needs documenting before the underwriter asks.
No — that’s the entire point of the program. Deductions only reduce taxable income, and these loans never look at taxable income. Your deposits are your income.
Your deposits, not your deductions. Bank-statement and P&L programs calculate income from the cash actually flowing through your accounts over 12–24 months — so the write-offs your accountant fought for stop working against you.
Two years is the comfortable standard, but strong files with 1–2 years — especially with prior experience in the same field — get done regularly. Bring me the real story and I’ll tell you honestly where you stand.
Typically a bit higher in exchange for the flexibility, but for strong profiles the gap is smaller than most people expect. I’ll show you the exact numbers side by side before you commit to anything.
Have a different question? Read the full FAQ or call Pat directly.
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Get a straight answer on your file.
One free call with Pat. Bring your situation, leave knowing your real options under this program — and exactly what it takes to close.