Mortgage solutions designed specifically for business owners, independent contractors, and freelancers. Get the flexibility you need with our self-employed loan programs.
Self-employed mortgage loans are specialized financing solutions designed specifically for business owners, independent contractors, and freelancers. Unlike traditional mortgages that rely solely on W-2 income and tax returns, these programs offer flexible documentation options and specialized income calculation methods.
Our self-employed mortgage programs recognize that business owners often maximize deductions, which can reduce taxable income on paper. We use customized income analysis to look at your actual business revenue and cash flow, providing mortgage solutions that traditional lenders can't offer to self-employed borrowers.
Multiple options for income verification, including bank statement programs that use 12-24 months of business bank statements instead of tax returns.
Our programs offer flexible documentation options and specialized income calculation methods designed for business owners
Our self-employed mortgage programs are designed for various types of business owners and independent professionals
Sole proprietors, LLC owners, S-Corp and C-Corp shareholders with at least 25% ownership stake.
1099 contractors, freelancers, consultants, and gig economy workers with consistent income.
Real estate investors, silent partners, and joint venture participants with business income.
Choose the income verification method that works best for your business situation
If your details are close to these guidelines, we encourage you to apply or contact us. Even if you don't qualify for this loan, we could have other options for you.
Typically need 2+ years of self-employment history with consistent income
Tax returns or 12-24 months of bank statements for income verification
Minimum 620 credit score for most self-employed loan programs
10-20% down payment typically required depending on program and credit
Streamlined 5-step process designed for business owners
Discuss your business structure and income documentation with our self-employed loan specialists. We'll determine whether tax returns or bank statements will work better for your situation and select the optimal program.
Gather 12-24 months of bank statements or 2 years of tax returns. Our specialists perform custom income analysis using methods designed for business owners, often resulting in higher qualifying income than traditional lenders.
Our experienced self-employed underwriters review your application with understanding of business finances. A professional appraisal is ordered to determine property value for loan-to-value calculations.
We verify your business through licenses, CPA letters, or business bank statements. Receive conditional approval and work through any remaining conditions specific to self-employed borrowers.
Complete the closing process and receive funding for your property. With Coast2Coast Mortgage's specialized self-employed process, business owners can secure financing that understands their unique financial situation.
Explore our resources to learn more about self-employed mortgage options, income verification methods, and strategies for business owners.
Traditional self-employed loans use tax returns to calculate income (typically Line 31 net income), which can be low due to business deductions. Bank statement loans use 12-24 months of business bank statements, calculating income as 50-75% of average monthly deposits. This often results in significantly higher qualifying income for business owners who maximize deductions. Bank statement programs don't require tax returns and are specifically designed for self-employed borrowers who show strong cash flow but lower taxable income.
Yes, we have programs available for business owners with less than 2 years of self-employment history. These programs typically require 12 months of bank statements instead of 24 months, and may have slightly higher down payment or credit score requirements. If you have a strong employment history in the same field before becoming self-employed, that can also help your qualification. Contact us to discuss your specific situation if you have less than 2 years in business.
Lenders typically calculate bank statement income by: 1) Reviewing 12-24 consecutive months of business bank statements, 2) Adding all deposits for each month, 3) Calculating the average monthly deposits, 4) Applying a percentage (usually 50-75%) to account for business expenses, 5) Using this as your qualifying monthly income. Personal bank statements may use 100% of deposits. The exact percentage depends on your business type, expenses, and the specific loan program.
If your tax returns show a business loss, bank statement programs are often your best option. These programs don't rely on tax return income, instead using your actual bank deposits to qualify. We can also look at add-backs for depreciation, interest, one-time expenses, or owner's salary that may not be reflected in the taxable income. Even with tax returns showing a loss, if you have consistent bank deposits showing business revenue, you may still qualify using our specialized programs.
Yes, requirements vary by business structure: Sole proprietors use Schedule C from personal tax returns. LLCs and S-Corps require both personal and business tax returns with K-1 forms. Partnerships need partnership returns and K-1s. C-Corps require corporate tax returns and evidence of ownership. Each structure has different documentation requirements, but all can qualify through either tax return or bank statement programs. We'll guide you through the specific requirements for your business structure.
Speak with a Self-Employed loan specialist