Being self-employed can make getting a mortgage feel way harder than it should.
You may have a profitable business, strong cash flow and plenty of money coming in—but after legitimate business deductions, your tax returns may show much less income than you actually live on.
That can make traditional mortgage qualification difficult.
But it does not automatically mean you cannot buy or refinance a house.
Depending on your situation, a mortgage without tax returns may allow you to qualify using a different way of documenting income.
Here are four options worth knowing.
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Updated for September 9 2026
1. Bank Statement Loans
A bank statement loan allows qualified self-employed borrowers to use personal or business bank deposits instead of relying on tax-return income.
At Andes Mortgage, bank statement programs may use 12 to 24 months of bank statements. The lender analyzes eligible deposits and applies the appropriate expense factor to estimate qualifying income.
This can make sense if your business has strong, consistent deposits but your tax returns show lower net income because of deductions.
It is not as simple as adding up every deposit. Transfers, non-business deposits and expenses may need to be excluded or adjusted.
2. 1099 Income Loans
If you are an independent contractor, freelancer, real estate agent, consultant or other worker paid on a 1099, a 1099 mortgage loan may be another option.
Instead of qualifying from traditional W-2 employment or tax-return income, certain Non-QM programs may use eligible 1099 income documentation.
Andes Mortgage currently offers 1099 programs designed for borrowers who receive 1099 income and may not qualify using traditional tax returns.
This can be particularly useful for borrowers whose income is strong but whose business deductions reduce their taxable income.
3. Profit and Loss Statement Loans
Another option is a P&L loan.
These programs may allow a business owner to qualify using a profit and loss statement showing the business’s revenue, expenses and net income instead of relying solely on tax returns.
Depending on the program, a lender may review a 12- or 24-month P&L prepared or verified by an acceptable tax or accounting professional. Andes Mortgage currently offers both 12- and 24-month P&L options.
This may work well when bank deposits are inconsistent but the overall business financials are strong.
4. DSCR Loans for Investment Properties
If you are buying or refinancing a rental property, a DSCR loan works differently.
Rather than qualifying primarily from your personal employment income, the lender evaluates the property’s rental income and housing payment.
That means DSCR financing generally does not use your traditional personal income documentation or personal DTI to qualify the property.
But DSCR loans are designed for eligible non-owner-occupied investment properties, not your primary residence.
If you are considering a rental, use the DSCR loan calculator to see how the property’s rental income compares with its projected payment before applying.
Are These Loans Better Than a Conventional Mortgage?
Not automatically.
If your tax returns support enough qualifying income, a conventional mortgage may offer better pricing, lower down-payment options or lower costs.
Alternative-documentation loans provide flexibility—but that flexibility can come with higher rates, larger down payments, additional reserves or different fees depending on the program.
That is why the goal is not to automatically choose Non-QM.
The goal is to figure out which documentation method makes your financial picture look the most accurate.
Start by reviewing the full range of Non-QM loan options or complete Mortgage Match to see which mortgage programs may fit your income situation.
Compliance Disclaimer
This content is for educational purposes only and is not financial, legal, tax or accounting advice. Alternative-documentation and Non-QM loan requirements vary by lender, investor, borrower, property type and program. Tax returns may not be required for certain programs, but borrowers must still provide documentation supporting income, assets, credit and eligibility. Rates, down payments, reserves, fees and qualification requirements may differ from conventional financing. DSCR loans are generally intended for eligible non-owner-occupied investment properties. Loan approval is subject to credit review, income or cash-flow verification, property eligibility, program guidelines and underwriting. This is not a commitment to lend. Andes Mortgage LLC, NMLS #2187991. Marcos Zambrano, NMLS #988935. Equal Housing Opportunity.
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