SELF EMPLOYED MORTGAGE LOANS MADE EASY
Business owners and 1099 earners can no get a home loan with just bank statements. No W2, No Tax Returns, No Stress!
How do Bank Statement Loans work for Self-Employed Individuals?
A bank statement loan or "self employed mortgage" lets you qualify for a mortgage using your bank statements instead of W2s or tax returns. Whether you're a small business owner, freelancer, or contractor, we offer flexible home loans built for entrepreneurs like you.
For many business owners with fluctuating income or multiple income streams, a mortgage for self employed borrowers is the only realistic way to buy a home. Traditional lenders often require two years of consistent W2 income, which disqualifies business owners and 1099 earners who are otherwise financially strong applicants. Home loans for self employed individuals solve this problem by focusing on cash flow and deposit history, not outdated paperwork.
Unlike conventional loans, bank statement loans have the following benefits:
-
Accept 1099 income, business deposits, and personal statements
-
Don’t require W2s, pay stubs, or employment verification
-
Work well for sole proprietors, LLC owners, and freelancers
-
Can be used to buy any home, whether a primary residence, vacation home or investment property.
If you're tired of being penalized for tax write-offs or non-traditional income, a self employed mortgage may be your best path to homeownership.
Why Self Employed Borrowers Choose LendFriend
LendFriend Mortgage is one of the best mortgage brokers in Texas and across the US for self employed individuals, entrepreneurs, and 1099 earners who need flexible, hassle-free mortgage options.
Our intuitive self employed loan app process is fast and frictionless. With LendFriend, there’s no need for tax returns, pay stubs, or long employment histories. Instead, we make it easy to qualify based on your business or personal bank statements—something most self-employed buyers already have ready to go.
Traditional, one-size-fits-all loans rarely work for self-employed buyers. We know how frustrating it can be to hear “no” from big banks just because your income doesn’t fit into a W2 box. That’s why we built a better way. That’s why we offer a wide range of non-QM and asset-based mortgage programs, designed to let you qualify based on real-world income from bank statements, 1099s, or assets—not just tax returns.
Whether you’re buying your first home, upgrading to a larger space, or investing in a second property, LendFriend gives you the tools, transparency, and support to succeed. From our self-employed mortgage calculators to our direct access to expert loan advisors, we’re committed to making homeownership easier for people like you.
Ready to see what you qualify for?
Here’s How LendFriend Makes It Simple to Qualify for a Bank Statement Mortgage
With our trusted network of lenders, LendFriend Mortgage helps self-employed borrowers, freelancers, entrepreneurs, and small business owners qualify for flexible home loans for self employed individuals—even if you don’t have W2s or traditional tax returns.
Whether you're a 1099 earner or running your own business, we make it simple to get preapproved with confidence using our easy loan app for self employed borrowers.
Step 1: Gather Your Bank Statements
Provide 12 to 24 months of personal or business bank statements. These statements help us calculate your average deposits and cash flow, reflecting your real earning power—not just your taxable income.
Step 2: Calculate Your Income
We analyze your monthly deposits—excluding transfers and irregular activity—to determine a consistent income figure that can be used for mortgage qualification. This step is essential for unlocking mortgage options for self employed borrowers.
.png?width=50&height=47&name=Email%20Icons%20(2).png "Email Icons (2)"){kind=small}
Step 3: Get Pre-Approved for the Right Loan
Once we calculate your qualifying income, we match you with the best-fit self employed mortgage program based on your goals. You’ll get pre-approved quickly and easily—without the red tape of tax returns, pay stubs, or employment verification.
Bank Statement Mortgage Wins From Past Clients
Bank Statement Mortgage Helps CEO Buy a $2M home in Austin
Client: Owner of a $1M+ revenue refreshments company
Problem: Traditional lender denied his mortgage for self employed income
Solution: Qualified with a 24-month bank statement mortgage loan
Result: Closed on a $2 million home in Austin, Texas—no tax returns required
Lawyer uses Self Employed Mortgage in Dallas to buy $1M New Construction
Client: Law firm owner buying a new construction home
Problem: Builder’s lender didn’t offer bank statement loans in Texas
Solution: We structured a non-QM self employment mortgage
Result: Closed on a $1M home near Dallas and kept all $10K in builder incentives
Newly Self-Employed Entrepreneur Buys $2.5M Home in Houston
Client: Newly self-employed with no tax return history
Problem: Had income, but only 12 months of self-employed earnings
Solution: Qualified with our 12-month bank statement mortgage program
Result: Closed on a $2.5 million home in Houston, Texas
5-Star Google Reviews From Entrepreneurs and Self-Employed Borrowers
5/5 Star Reviews on Google, Zillow, and Experience.
-
LendFriend is the only place to go for mortgage brokerage services. Their unparalleled technical knowledge, relationships with a wide array of lenders, and outstanding service make them the absolute best place to secure your next mortgage.
Robert Daake
Closed March 2025 -
I am so grateful for Micheal and his team. As a first time homebuyer with multiple businesses, I was very nervous about the loan process. Anyone who’s self employed knows loan processes for us are more extensive but LendFriend made it an ease. From getting a great rate to closing, they made clear communication and were extremely helpful .... They are truly amazing people to have on your team. Thank you Micheal, Morgan and Crystal.
Annie Momin
Closed September 2024 -
LendFriend has been an outstanding lending partner, reliable, transparent, and incredibly easy to work with. Their team made the entire process smooth from start to finish, always available to answer questions and guide us through each step. I highly recommend LendFriend to anyone looking for a trustworthy and efficient lender.
Trung Nguyen
Closed June 2025 -
I had a great experience working with Eric and his team @ LendFriend. As a CEO/business owner my personal finances can be complex. Eric was able to bring me a tailored solution that met my needs without making the process unnecessarily clunky or painful. I highly recommend Eric and his team if you’re looking for alternative solutions with great rates.
Andrew Didier
Closed August 2024 -
Eric and his team are great! They helped me get the best rate and were incredibly proactive on getting me the best deal as the market was changing. I will definitely work with him again and highly recommend anyone else that has questions about real estate to give him a call and he will do his best to understand and provide you the best outcome
Blake
Closed May 2024
Our Mission: Simplifying Self Employed Home Loans for Entrepreneurs
When Eric and Michael founded LendFriend, they had one goal: to make it easier for self-employed people to buy homes—without jumping through hoops or getting denied over paperwork.
They had both experienced the same frustrating reality. Despite having great credit, strong revenue, and healthy savings, they were denied by traditional lenders. Why? Because they didn’t have W-2s or two years of consistent income. Like many freelancers, 1099 earners, and small business owners, their tax returns didn’t tell the full story—even though their bank statements clearly showed they could afford the mortgage.
That experience inspired them to launch LendFriend: a lender designed specifically for the self-employed. Instead of relying on outdated guidelines, they built a process around real cash flow, deposit history, and entrepreneurial income—what actually matters.
Today, LendFriend is known for offering mortgages without tax returns, and helping people qualify based on bank statement mortgage loans instead. Whether you’re applying with 12 or 24 months of deposits, our team knows how to get it done.
We’ve built our entire business around people like you:
-
Home loans for business owners who don’t have W-2s
-
Best mortgage lenders for self employed buyers, nationwide
-
Streamlined approvals through our loan app for self employed borrowers
-
Real guidance from loan experts who speak your language
We understand how self-employed income works—because we’ve lived it. Our goal isn’t just to say “yes” when others say “no.” It’s to create a smoother, faster, more respectful experience from start to finish.
If you’ve been turned down because of tax returns, or told to “come back in two years,” don’t wait. Whether you're a gig worker, a contractor, or a founder scaling your business, we’ll help you qualify based on your strengths—not punish you for working differently.
You built your income your way. Now we’ll help you buy a home your way.
Want to learn more about Self-Employed Loans?
Talk to Eric today!
FAQs: How Bank Statement Loans Work for Self-Employed Borrowers
How many months of bank statements do I need to give to qualify for a mortgage?
Providing 24 months of bank statements usually gives lenders the most confidence in your income stability—often resulting in better mortgage rates and terms.
However, you can provide as little as 12 months of bank statements to qualify for a bank statement mortgage. With 12 statements, lenders may require a higher down payment, stronger credit, or charge slightly higher rates to compensate for the shorter income history - but it's better than not qualifying for the mortgage at all!
LendFriend is a top self employed mortgage broker because we're able to tell you which option gives you the best chance to qualify for a competitive self employed mortgage.
What do mortgage lenders look for on bank statements?
The most important thing on the bank statement is deposits! Remember, the bank statements are meant to simulate your income, so revenue is the most important piece of the puzzle.
In most cases, lenders focus on your gross deposits, not your net income after expenses. That means your self employed mortgage qualification is based on cash flow—how much money is coming in—not necessarily how much you write off.
The best mortgage brokers will look to obtain an expense ratio from your CPA when qualifying you to understand what your true expenses are (not what you write off on your tax returns).
How do I calculate self-employed income for mortgage loans?
The short answer is that you'll take an average of all your deposits over the 12 or 24 month period of bank statements and deduct an expense ratio (provided by your CPA). For instance, if your average monthly gross receipts are $30,000 and your expense ratio is 20%, your "income" will be roughly $24,000.
However, the best (and easiest) way to calculate your monthly income is to have LendFriend do it for you. We'll get you an accurate answer in no time. Get in touch with us today to have your income calculated.
What happens if my bank statement income varies from month to month?
Fluctuating income is totally normal for self-employed borrowers. Lenders typically average your deposits over the past 12 to 24 months to calculate a consistent, qualifying income figure. That average is what determines how much home you can afford.
Can I qualify for a bank statement mortgage if I have multiple businesses or income streams?
Yes! Bank statement loans are ideal for borrowers with multiple income streams—whether you run several businesses, have 1099 income, side hustles, or freelance work. We’ll structure your application to reflect your full income picture, so you can qualify based on everything you earn.
WHY CHOOSE LENDFRIEND?
After exploring the best mortgages for self employed buyers, it’s clear that who you work with matters just as much as the loan itself. At LendFriend Mortgage, we’re more than just a lender—we’re your dedicated mortgage broker, focused on securing the best possible outcome for self-employed borrowers, freelancers, and 1099 professionals.
Around the Clock
We’re here 7 days a week, 365 days a year to help you compare mortgage rates, get pre-approved, and move forward with confidence to buy or refinance your home on your timeline.
Specialized Non-QM & Bank Statement Loan Options
We specialize in non-QM loans, bank statement mortgages, and asset-based solutions designed for self-employed borrowers who earn differently. You don’t need W2s or tax returns—just consistent income shown through deposits.
Get Pre-Approved Quickly
Apply online to secure a pre-approval that strengthens your offer and moves you one step closer to your new home.
Flexible Documentation Requirements
We focus on real-world income—from bank statements, cash flow, and deposits—not traditional employment paperwork. Perfect for entrepreneurs, consultants, and business owners.
Personalized Mortgage Guidance
Every borrower works 1-on-1 with Eric or Michael, each a dedicated self employed mortgage expert who understands self-employment income and helps you choose the right loan for your unique financial picture.
Close in 3 Weeks
Most LendFriend clients close their self employed mortgage in 21 days or less, even without W2s. Our process is built for speed—without sacrificing service.
WHAT TO EXPECT WITH OUR PROCESS.
Get ready for a loan experience unlike any you’ve ever had. A friendly, responsive representative will help guide you throughout the entire process; from application to funding to anything you’ll ever need beyond. A different way to mortgage by a different kind of mortgage company.
Step 1: Application
Complete our easy online application.
Step 2: Disclosure
Review and e-Sign our disclosure forms.
Step 3: Initial Documentation
Submit your documents.
Step 4: Conditional Approval
Receive your loan approval from underwriting.
Step 5: Loan Closing!
A notary comes to your house for closing.