Self-Employed and Struggling to Qualify? Non-QM Loans Could Be Your Path to Homeownership

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Dec 10, 2025
3 min read

Updated: Dec 30, 2025

Are you self-employed or a 1099 earner who’s tired of hearing “you don’t qualify” just because your tax returns don’t show your real income? You're not alone and you’re not out of options. — Are you self-employed or a 1099 earner who’s tired of hearing *“you don’t qualify”* just because your tax returns don’t show your real income? You're not alone and you’re not out of options.

At LJ Mortgage Team Inc., we proudly offer flexible Non-QM (Non-Qualified Mortgage) programs built specifically for business owners, gig workers, and independent contractors whose traditional tax documents don’t tell the full story of their financial strength.

If you have strong deposits but low taxable income, these Non-QM loan options may help you qualify for the home or investment property you truly can afford.

🔹 Non-QM 1099 Loan

Perfect for contractors, commission earners, and freelancers paid primarily through 1099s.

Program Highlights:

Minimum 720 credit score
20%+ down payment
Up to 55% debt-to-income (DTI)
Estimated 5%–7% closing costs
Use up to 90% of your 1099 gross income
Two years of 1099s and one year with same employer required
20% down = 6 months reserves
25% down = no reserves required

If your 1099 income is strong but your tax returns don't reflect your true earning power, this program helps bridge that gap.

🔹 Bank Statement Loan

Designed for business owners and self-employed earners who show income through bank deposits rather than tax returns.

Program Highlights:

Minimum 720 credit score
20% down for 1-unit homes
25% down for 2+ unit properties
Up to 49% DTI
Estimated 5%–7% closing costs
No tax returns / no traditional income check
Qualify using 12 or 24 months of personal and/or business bank statements
Must have no NSF (non-sufficient funds) in the last 24 months
Eligible for primary homes or investment properties
3 months reserves required
Possible prepayment penalty if refinanced in years 1–5

This program is ideal if your cash flow is strong but your adjusted gross income doesn’t represent your actual income.

⭐ Who Benefits Most From These Programs?

1099 earners
Independent contractors
Business owners
Gig workers
Real estate professionals
Entrepreneurs
Investors

If you rely on deposits, invoices, or gross receipts not W2s to prove income, these programs may be the key to unlocking your buying power.

📞 Ready to See What You Qualify For?

The LJ Mortgage Team is here to guide you through your options and find the loan program that best fits your financial profile.

👉 Message us or call (516) 218-1297Let’s review your scenario and get you closer to homeownership or your next investment property.

Disclaimer

Loan program terms, conditions, and guidelines are subject to change without notice. Not all applicants will qualify. Minimum credit scores, down payment percentages, reserve requirements, maximum debt-to-income ratios, closing cost estimates, and eligibility for primary, second home, or investment properties depend on full underwriting review by third-party lenders. Prepayment penalties may apply on certain Non-QM products, including bank statement loans, especially if refinanced or paid off within the first years of the loan term. This is not a commitment to lend or an offer to extend credit. All loans are subject to credit approval, acceptable property, and program availability at time of underwriting. Terms and Conditions apply.

LJ — Your Local Guide to Homeownership!

127-03 Rockaway Blvd South Ozone Park, NY 11420

(516) 218-1297

LJ Realty Team Buy • Sell • Rent Equal Housing Opportunity

LJ Mortgage Team Inc. NMLS# 2120286Purchase & Refinance NYS Registered Mortgage Broker, NYS Dept. of Financial Services. Broker arranges mortgage loans with third-party providers. MORTGAGE BROKER ONLY, NOT A MORTGAGE LENDER OR CORRESPONDENT LENDER. Licensed by the NJ Department of Banking and Insurance. We do not make mortgage loan commitments or fund mortgage loans. NMLS ID #2120286 — www.nmlsconsumeraccess.org