Buy a home
Explore purchase financing using eligible alternative income documentation.
Flexible mortgage qualification for business owners
Self-employed? You have options.
Tax returns don't always tell the full story of a successful business. Bank statement and P&L / balance sheet mortgage programs may offer alternative ways to document qualifying income.
Explore My Loan Options →Compare Programs✓ Purchase or refinance✓ Alternative income documentation
Why consider these loans?
Financing that looks beyond traditional tax returns
These nontraditional mortgage programs may help eligible self-employed borrowers whose taxable income doesn't fully reflect their business cash flow.
Refinance
Review options to change existing loan terms or potentially access available equity.
More ways to qualify
Depending on the lender, income may be evaluated using deposits or business financial statements.
Two approaches
Which documentation works for you?
Bank Statement Loans
May use qualifying deposits from personal or business bank statements to evaluate income.
- Commonly based on 12 or 24 months of statements
- Useful when tax deductions reduce reported income
- Deposit analysis and expense factors vary by program
P&L / Balance Sheet Loans
Selected programs may consider business financial statements when assessing repayment ability.
- Documentation may include a P&L and balance sheet
- Preparation or verification requirements vary
- Business history and financial stability matter
At a glance
Bank Statement vs. P&L / Balance Sheet
| Feature | Bank Statement | P&L / Balance Sheet |
|---|---|---|
| Primary documentation | Eligible bank deposits | Business financial statements |
| Common fit | Self-employed borrowers with consistent deposits | Established business owners with supportable financial results |
| Income review | Deposits adjusted under program rules | Business earnings and financial position evaluated under program rules |
| Potential use | Eligible purchase, refinance, or cash-out | Eligible purchase, refinance, or cash-out |
Neither option guarantees approval. Loan availability, down payment, credit, reserves, property eligibility, rates and required documents vary by lender.
Quick answers
Common questions
Are these truly no-documentation loans?
No. Alternative-documentation mortgages still require income evaluation and underwriting. The documentation differs from a traditional tax-return-based mortgage.
Are rates higher than conventional mortgages?
They can be. Pricing depends on the loan program, credit profile, property, down payment, and market conditions.
Can I use one of these loans to refinance or take cash out?
Potentially. Cash-out and refinance options depend on available equity and lender guidelines.
Which option is better for my business?
That depends on your deposit patterns, financial statements, business history, and overall qualifications. A loan advisor can compare both options.
Let's find your fit
Let's review your income options.
Talk through your business income and financing goals. Call 844-WHY-LOVE (844-949-5683) or email info@ilovemylender.com.
