Conventional mortgage guidelines can make financing unnecessarily difficult for self-employed borrowers. Many lenders require two full years of business history, personal and business tax returns, and income calculations that fail to reflect the borrower’s actual cash flow. We specialize in non-QM mortgages and alternative financing for borrowers who do not fit conventional lending guidelines. Our programs include bank statement loans, profit-and-loss-only mortgages, 1099 programs, written verification of employment, and even specialized no-income-verification options for primary residences in New York.
For borrowers with a shorter business history, our One-Year Self-Employed Mortgage Program may provide a practical path forward.
One-Year Self-Employed Program Highlights
- Only one year of self-employment required
- Credit scores starting at 620
- No-credit-score options available
- ITIN borrowers eligible for up to 85% LTV
- Debt-to-income ratios permitted up to 50%
- Loan amounts available up to $1.5 million
- No minimum tradeline requirement
- Gift funds permitted
- Multiple alternative income-documentation options
- Primary residences, second homes, and investment properties may be eligible
Multiple Borrower Types Accepted
- U.S. citizens
- Permanent residents
- Non-permanent residents
- DACA recipients
- ITIN borrowers
Creative Ways to Document Income
Bank Statement Loans – Borrowers may qualify using personal or business bank statements instead of tax returns. Deposits are analyzed to establish monthly income, making this option useful for business owners with substantial tax deductions.
1099 Income – Independent contractors may qualify using 1099 forms rather than tax returns. Depending on the program, a favorable percentage of gross 1099 income may be used.
Profit-and-Loss-Only Programs – Income may be established through a professionally prepared profit-and-loss statement. Certain qualifying programs do not require accompanying tax returns or bank statements.
Written Verification of Employment – A written verification of employment, commonly called a WVOE, may be used to document the borrower’s current earnings without requiring complete tax returns.
W-2 Income – Borrowers who receive both self-employment and W-2 income may be able to use their documented wages as part of the qualification process.
ITIN Financing Up to 85% LTV
Borrowers using an Individual Taxpayer Identification Number may qualify for financing up to 85% LTV. This can allow an eligible ITIN borrower to purchase a property with as little as 15% down, subject to credit, income, asset, occupancy, and property requirements.
No Minimum Tradelines
Many mortgage programs require borrowers to have a minimum number of established credit accounts. Our one-year self-employed program does not impose a minimum tradeline requirement. This can help applicants with limited conventional credit histories, including newer U.S. residents, ITIN borrowers, and individuals who primarily use cash or debit accounts.
Gift Funds Are Permitted
Eligible gift funds may be used toward the down payment, closing costs, or other permitted transaction requirements. The donor, transfer, documentation, and borrower contribution must meet the selected program’s guidelines.
Cannabis Income May Be Accepted
Income derived from a qualifying cannabis-related business may be considered when the business operates legally under applicable state requirements, and the income can be properly verified. Cannabis-industry borrowers often encounter difficulty with banks and conventional mortgage programs. Our non-QM lender network allows us to review these scenarios individually and determine whether the income, business structure, assets, and property meet an available program.
Specialized New York No-Income-Check Options
East West Funding also provides access to highly specialized mortgage programs that may allow eligible borrowers to finance a primary residence in New York without income verification. These programs are difficult to find and are not conventional loans. They generally rely more heavily on the borrower’s credit, assets, equity, down payment, housing history, and overall ability to meet the program requirements. A no-income-check mortgage is different from the one-year self-employed program described above. We review each borrower’s circumstances to determine whether alternative income documentation or a true no-income-verification option is the more appropriate solution.
Contact us to discuss your self-employed mortgage options.
