Self-Employed Mortgage Options (P&L / Bank Statement / Non-QM)
​
If your tax returns don’t show the full picture, you’re not alone. Many strong borrowers get boxed out by traditional underwriting rules. Non-QM options can solve that — if structured correctly.
​
​
Why Self-Employed Borrowers Get Declined
​
Traditional mortgage guidelines often rely heavily on taxable income reported after deductions. For many business owners, that number does not reflect real cash flow.
Common scenarios include:
• Business owners with significant write-offs
• Commission-based income with variability
• High cash flow but lower taxable income
• Newer self-employment history with strong reserves
Being self-employed does not mean you are unqualified. It simply means the loan structure must match your income structure.
​
Non-QM Options That May Apply
Depending on your scenario, potential solutions may include:
• Bank statement programs
• P&L-based qualification (prepared appropriately)
• Asset-based approaches (case-by-case)
• Investor products such as DSCR
The key is evaluating the documentation first before assuming what works.
​
​
What You’ll Get From Me
• A fast read on whether a Non-QM path fits
• A simple document checklist
• A clear plan before you waste time shopping houses
• Transparent expectations on payment and reserves
​
If you’re buying in Orange County, San Diego, Riverside, Sonoma, Napa, Solano or San Bernardino, preparation matters.
​
Content by The Belfor Team, Mortgage Lender California