Self-employed
Self-employed and bank statement loans in Kentucky. Mortgage options for business owners and self-employed borrowers.
Self-employed income can be documented several ways. I compare conventional financing with bank statement, 1099 and other non-QM options to find the approach that fits your business and the home you want to finance.
Start with a conversation. No credit check for an initial discussion.
Choosing how to document your income
Tax returns, bank statements and 1099 forms each tell part of your income story. The right documentation depends on the program and how your business runs.
Bank statement programs look at your eligible deposits and apply the lender's income calculation. I compare that result with your other options and explain how the loan terms differ.
How the deposits become income
The lender takes 12 or 24 months of statements, averages the deposits, and applies an expense factor to reach a qualifying income figure. Roughly:
- Business accounts: commonly a 50% expense factor, on the assumption that half of what comes in goes back out as costs
- Business accounts with a CPA letter: a reduced factor where an accountant will attest to your real expense ratio, which can lift the qualifying figure a lot
- Personal accounts: often used at or near 100% of qualifying deposits, since what lands there is usually already net
- 1099 programs: for contractors paid on 1099, qualifying from the forms themselves
The expense factor can change your qualifying income by a lot. Lenders treat business types and supporting documents differently, so I compare how each would handle your income before I recommend a program.
Illustrative examples. Expense factors depend on the lender, the business type and your supporting documents. Use the calculator below to see how the factor changes the estimate.
What non-QM means
These products sit outside the Qualified Mortgage framework, which is a regulatory category, not a quality grade. The underwriting is thorough. It just accepts a wider range of evidence that you can pay. Asset depletion programs qualify from liquid assets. Asset-based programs work for borrowers whose wealth isn't shaped like income. ITIN programs serve borrowers without a Social Security number.
These options widen the ways your income and assets can be counted for a mortgage.
- 0112 or 24 months of statementsBusiness, personal, or both. The lender picks the cleaner story.
- 02Deposits are averagedTransfers between your own accounts come out. Large one-offs get explained.
- 03An expense factor is appliedStandard, CPA-attested, or none for personal accounts. This step changes the qualifying income the most.
- 04Qualifying income sets the paymentSame debt-ratio math as any other loan from here on.
- 05Appraisal, underwriting, closeTimelines run close to a conventional purchase once the income is settled.
Typical bank-statement sequence. 1099 and asset-based programs replace the first three steps with their own income calculation and then follow the same path.
What we'll review
Start by telling me how your business earns income, how long you've been self-employed, and what you want to buy or refinance. Bank statements, business information and other documents may be needed once we know the likely programs, and I'll give you a list built for that lender and income approach.
You don't need to put together a full loan file before we talk.
Comparing lenders for self-employed income
I look at how each lender evaluates your type of business, which deposits can be counted, and what documents they need. Then I compare the payment, upfront costs and loan structures available to you.
If you're buying or refinancing a rental property, we can also compare a DSCR loan in Kentucky, which qualifies on the property's rental income.
Run the numbers
What income would your deposits support?
Average monthly deposits, with the expense factor the program applies. Switch the statement type to see how much the factor moves the answer.
Business statements assume 50% of deposits go to expenses. A CPA letter can support a lower figure (35% here).
Expense factors vary by lender and business type. This models the common ones. These are illustrative estimates, not a rate quote, an offer, or a commitment to lend. Your real figures depend on your full file. Every other program has its own calculator, and they are collected here.
Common questions
Can I get a mortgage if I write most of my income off?
Often, yes. Bank statement loans give you another way to document income when your tax returns don't support the financing you want. The lender uses 12 or 24 months of deposits into your business or personal accounts and applies an expense factor to get a qualifying income. I compare that result with the other options for your purchase or refinance.
How is qualifying income calculated on a bank statement loan?
The lender averages the deposits over the statement period and applies an expense factor. On business accounts that's commonly 50%, with lower factors sometimes available when a CPA will attest to your real expense ratio. Personal accounts are often used at or near 100% of qualifying deposits. The factor you get varies a lot between lenders, and it changes the number.
How long do I need to have been self-employed?
Two years is the standard expectation. Some programs work at one year, especially if you moved into self-employment in the same line of work you were employed in before. If you're close to a threshold, it's sometimes smarter to time the application than to get declined and start over.
What is a non-QM loan?
Non-QM means the loan sits outside the Qualified Mortgage framework, so it isn't bound by those documentation rules. It's not a subprime product and it's not a lower standard. It's a different standard, built for income that's real but doesn't show up in the format conventional underwriting expects. Bank statement, asset-based and 1099 programs all live here.
Can I get a mortgage with an ITIN instead of a Social Security number?
Yes. ITIN mortgage programs are available through some lenders. I can go over the options and explain the documentation, down payment and terms for your situation.
No credit pull · No obligation
Discuss your bank statement or self-employed mortgage.
Tell me what you're buying or refinancing, your timing, and the questions you want to work through. I'll review the details and contact you about the next step.
🔒 Nothing on this form touches your credit. No Social Security number, no pay stubs, no application. Just enough for me to follow up with you. Equal Housing Opportunity. Ryan Miles, NMLS #112627 · Coast2Coast Mortgage, LLC, NMLS #376205.