Being self-employed is amazing… until you try to get a mortgage.
Suddenly, all that freedom turns into a spreadsheet headache.
But here’s the good news: If your 2025 tax return looks like a magician made your income disappear, that doesn’t mean you’re out of the homebuying game in 2026.
Let’s break down the best loan options for business owners, 1099ers, and entrepreneurs this year — and how Stephanie Donnell can help self-employed buyers qualify without the stress.
1. Bank Statement Loans (No Tax Returns Needed)
This loan type uses your business or personal bank statements to calculate qualifying income — not your tax return. 🙌
Typically, we’ll average 12 or 24 months of deposits and subtract an expense factor (or use a CPA letter), depending on how your business is structured.
Perfect for:
✅ Business owners who write off everything
✅ 1099 contractors with strong revenue
✅ Entrepreneurs with growing income not yet showing on tax returns
2. DSCR Loans (Great for Investment Properties)
Debt Service Coverage Ratio (DSCR) loans are perfect if you're investing in a property — they qualify based on the property’s income, not your personal income.
If the rent covers the mortgage (or gets close), you’re likely good to go.
It’s like the property qualifies on its own merit.
Perfect for:
✅ Real estate investors
✅ Airbnb/short-term rental buyers
✅ Buyers with multiple properties or high write-offs
3. Investor HELOCs (Tap Your Equity for New Deals)
An Investor HELOC allows you to pull equity from an existing rental property without refinancing the first mortgage. It's a line of credit you can use to fund down payments, rehab costs, or even cover cash reserves when buying another property.
Unlike traditional HELOCs (which are mostly offered on primary residences), these are designed for rental or investment properties.
Perfect for:
✅ Real estate investors who want quick liquidity
✅ Buyers doing BRRRR-style investing
✅ Anyone who doesn’t want to touch their low-rate first mortgage
Pro tip: Pairing a DSCR loan on the new property with an Investor HELOC from an existing one can be a powerful combo.
4. P&L-Only or Asset Depletion Options
Some niche programs let us use just a CPA-prepared Profit & Loss statement or liquid assets to qualify. These are super specialized but can work when nothing else does.
How Stephanie Donnell Can Help Self-Employed Clients Win
Here’s the thing: qualifying as self-employed isn’t just about finding the right loan — it’s about crafting the right income strategy.
When we work together:
- Review your business structure and cash flow
- Look at all loan options (conventional, non-QM, bank statement, DSCR, HELOCs, etc.)
- Create a custom game plan based on your financials — not a generic checklist
- Coordinate with your CPA if needed to time tax returns or write-offs correctly
- Keep the process as simple and strategic as possible
Don’t Let Your Tax Return Kill Your Home Goals
Self-employed doesn’t mean unqualified — it just means you need a lender who speaks your language. And that’s me.
📅 Ready to explore your options? Schedule a 15 min call
📥 Or send me your scenario, and I’ll give you my honest opinion — no pressure, just real guidance.