More ways to document self-employed income
Getting a home loan as a self-employed borrower can be challenging because business deductions may reduce the taxable income shown on a tax return. Edge Home Finance works with lenders that may evaluate qualifying income using tax returns or, for eligible alternative-documentation programs, bank statements or profit-and-loss statements.
These programs do not eliminate income verification or ability-to-repay requirements. Instead, they may provide another permitted way to document business revenue, expenses and cash flow when tax-return income does not tell the full story.
Options may be available for qualifying primary residences, second homes and investment properties. Documentation, down payment, reserves, credit requirements, rates and eligible property use vary by lender and program.
What to know
Self-employed borrowers may qualify using personal or business tax returns. Eligible alternative-documentation programs may instead evaluate bank statements or a profit-and-loss statement, sometimes supported by additional business documentation. Income, cash flow, assets, credit and ability to repay must still satisfy the selected lender’s guidelines.
Start with a conversation
Tell me where the property is, how you plan to use it and what you want the loan to accomplish. I can help you understand which details lenders will review and compare available paths.
How can self-employed borrowers document income?
Self-employed borrowers can qualify using tax returns or, for eligible non-QM programs, permitted alternative documentation such as bank statements or profit-and-loss statements. The required documentation, eligible property use and terms vary by lender and borrower qualifications.