Home Loans for Self-Employed and Non-Traditional Income
By Bilal Salimi, Broker DRE# 01480904 · NMLS# 300923 · Terms checked October 28, 2026
Which program fits you?
How do you earn most of your income? (choose all that apply)
Anything else true for you?
Select what applies to see matching programs.
Programs and typical terms (primary residence)
Typical published ranges from current wholesale lender guidelines (checked October 28, 2026). Terms vary by lender, credit, loan size and property type; higher loan amounts and lower credit scores mean lower maximum financing.
Bank statement
12 or 24 months of personal or business bank statements. Business statements use an expense factor (a fixed ratio, a CPA/EA/CTEC letter, or a prepared P&L). Usually 2 years in business and at least 25% ownership. No tax returns.
P&L only
A 12- or 24-month profit & loss statement signed by a CPA, IRS Enrolled Agent or CTEC-registered preparer. Some lenders also want 2–3 months of bank statements supporting it.
1099 only
1099 forms (typically 1–2 years) instead of tax returns, often with an expense factor applied.
WVOE only (written verification of employment)
Your employer's HR or payroll completes Fannie Mae Form 1005. No pay stubs, W-2s or tax returns. Some lenders add 2 months of bank statements showing the payroll deposits. Can't work for a family member's company.
Asset depletion / asset utilization
Qualifying income is calculated from your assets: eligible assets left after closing ÷ 60 or 84 months (some lenders use 36). Retirement accounts usually count at 70–80% and stocks at 80–100%. Unvested RSUs and options don't count.
Recent credit event
Full or alternative documentation. Lenders tier the maximum loan-to-value by time since the event: commonly 12–23 months at about 65% (bankruptcy or foreclosure) and 24–35 months at about 80%. Some allow a short sale or deed-in-lieu under 12 months at a lower loan-to-value.
Non-QM jumbo and interest-only
Any of the documentation types above. Interest-only periods are typically 10 years.
ITIN loans
A valid ITIN and government photo ID, with full documentation or bank statements (some lenders accept WVOE). Typically 12 months with no late housing payments. Interest-only and LLC vesting usually not allowed.
WVOE: conventional or Non-QM?
Fannie Mae accepts an employer-completed Form 1005 to document employment and income on a regular conventional loan, as long as it gives enough information. That loan still has to meet all the usual conventional rules, including a verbal check with your employer shortly before closing. A Non-QM WVOE-only program is built around the form: no pay stubs, W-2s or tax returns at all, usually up to 75–80% financing. If you're a W-2 employee, I check whether you qualify conventionally first, since it's usually less expensive.
How long after a bankruptcy or foreclosure?
| Event | Conventional (Fannie Mae) | FHA | Non-QM (typical) |
|---|---|---|---|
| Foreclosure | 7 years (3 with extenuating circumstances) | 3 years | 12–36 months, with lower financing the sooner you buy |
| Chapter 7 bankruptcy | 4 years | 2 years | 12–36 months, tiered |
| Short sale or deed-in-lieu | 4 years | 3 years | Some lenders: under 12 months at reduced financing |
Agency waiting periods per the Fannie Mae Selling Guide and HUD Handbook 4000.1; shorter periods may apply with documented extenuating circumstances. Non-QM seasoning varies by lender.
What to know before you apply
- Not "no-doc." For a home you'll live in, the lender must still verify your ability to repay with reliable records.
- No prepayment penalty on a primary-home Non-QM loan; investment-property loans are different.
- Pricing is higher than conventional. Many borrowers use Non-QM for a few years, then refinance into a conventional loan once tax returns, credit or seasoning catch up.
- Down payment from your own funds: many programs limit gift funds unless you contribute a share yourself.
How I help
As a mortgage broker through SI MTG, I compare Non-QM programs across multiple wholesale lenders, since each one counts bank deposits, expense ratios and assets differently, and the same income can qualify for very different loan amounts. As your real estate broker too, I can line up the loan before you write an offer, so sellers see a strong pre-approval.
Get today's pricing Book a free consultationFAQ
Can I buy a house with bank statements instead of tax returns?
Yes. Bank statement loans qualify self-employed borrowers on 12 or 24 months of personal or business bank deposits instead of tax returns. Typical published terms allow up to about 90% financing with strong credit, with credit scores from about 600–660, but terms vary by lender.
What is a WVOE-only loan?
A loan where your employer completes Fannie Mae Form 1005 (written verification of employment) and you don't provide pay stubs, W-2s or tax returns. Non-QM WVOE programs typically allow up to 75–80% financing. Fannie Mae itself also accepts Form 1005 as income documentation on conventional loans, so some borrowers qualify for a conventional loan instead.
How soon can I buy a house after bankruptcy or foreclosure?
Conventional loans generally require 7 years after a foreclosure and 4 years after a Chapter 7 bankruptcy or short sale; FHA generally requires 3 years after a foreclosure or short sale and 2 years after a Chapter 7 bankruptcy. Non-QM lenders commonly allow 12–24 months, with a larger down payment.
Do Non-QM loans have prepayment penalties?
Not on your primary home. Federal rules allow prepayment penalties only on certain qualified mortgages whose rate can't increase, so a Non-QM loan on a home you live in (or a second home) can't have one. Non-QM investment-property loans, like DSCR loans, often do.
Can I qualify for a mortgage using my investments or savings?
Yes, with asset depletion (also called asset utilization). Lenders divide your eligible assets left after closing by a set number of months, commonly 60 or 84, to create qualifying income. Retirement and stock accounts may count at a discount.
Are Non-QM loans "no-doc" loans?
No. For a home you'll live in, lenders must still verify your ability to repay using reliable third-party records such as bank statements, a CPA-prepared P&L, an employer verification or asset statements. Non-QM means the loan uses different documentation or terms than a standard qualified mortgage.
Typical published program terms checked October 28, 2026; not a loan offer, commitment or rate quote. All loans are subject to credit approval, underwriting and property eligibility. Loans arranged through SI MTG, the mortgage division of Salimi Investments, NMLS# 300923, a mortgage broker, not a lender. Bilal Salimi, Broker DRE# 01480904 · (510) 786-8739. Equal Housing Opportunity.