Self-Employed❓ You Don’t Need Tax Returns to Buy a Home
- Alisha
- Apr 9
- 2 min read
If you’re self-employed, a business owner, or earning 1099 income, getting approved for a traditional mortgage can feel frustrating.
Why? Because your income may not look “perfect” on paper — even if you’re actually earning strong income.
The good news: there’s a solution.
💡 What Is a Bank Statement Loan?
A bank statement loan allows you to qualify for a mortgage using your actual cash flow, not your tax returns.
Instead of W-2s or tax documents, lenders review your bank statements to determine your income.
👉 Explore all loan options: https://www.ljmortgageteam.com/loanprograms
✅ How It Works
With a bank statement loan, you can:
Qualify using 12–24 months of bank statements
Skip tax returns entirely
Use personal or business accounts
Qualify with up to 49% debt-to-income ratio
Purchase a primary home or investment property
This makes it one of the most flexible loan options available today.
📊 What to Expect
Here are the typical guidelines:
Credit Score: ~700+
Down Payment: 20% (1–2 units) | 25% (3+ units)
Closing Costs: 5%–7%
Reserves: 3 months required
These programs are designed for financially strong borrowers who may not show high income on tax returns.
⚠️ Important Guidelines
Before applying, keep these in mind:
No gift funds allowed
No recent NSF (bounced) transactions
Prepayment penalties may apply
Understanding these details upfront helps avoid surprises during the approval process.
🚀 Who This Is Perfect For
Bank statement loans are ideal for:
1099 earners
Business owners
Real estate investors
Borrowers who write off significant income on taxes
If traditional lenders have told you “no,” this could be your path to approval.
📲 Ready to See What You Qualify For?
Don’t let tax returns hold you back from homeownership.
👉 Check your numbers here: https://www.ljmortgageteam.com/affordability
Let’s structure a plan that works for your real income — not just what’s on paper.
📊 Connect With Us! 📊
Click to Connect!
📍 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 2120286
Purchase & RefinanceNYS Registered Mortgage Broker, NYS Dept. of Financial Services.
Broker arranges mortgage loans with third-party providers.
Important Disclosure: Mortgage Broker Only — Not a mortgage lender or mortgage correspondent lender. Licensed By The N.J. Department Of Banking And Insurance. We Do Not Make Any Mortgage Loan Commitments Or Fund Any Mortgage Loans.
NMLS ID 2120286
Terms and Conditions apply.
Frequently Asked Questions ❓ (FAQs)❓
Do I really not need tax returns?
Correct. Bank statement loans allow you to qualify using bank deposits instead of tax returns.
How is income calculated?
Lenders review 12–24 months of deposits and apply an expense factor to determine qualifying income.
Can I use this for an investment property?
Yes, bank statement loans can be used for both primary residences and investment properties.
What credit score do I need?
Most programs require around a 700+ credit score, though this may vary by lender.
Are rates higher than traditional loans?
Typically, yes. These loans offer flexibility, which can come with slightly higher rates.
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