Qualify using bank statements, 1099s, or business cash flow—even if your tax returns show limited income due to heavy write-offs.
Traditional lenders often calculate income using tax returns. Unfortunately, many contractors legitimately deduct:
As a result, a highly profitable contractor may appear to earn far less on paper than they actually earn. This is where bank statement and alternative documentation loans step in to save the day.
Contractor Gross Revenue:
$250,000
Tax Return Net Income (After write-offs):
$65,000
The Outcome:
Traditional Lender: Declined due to low net income.
Our Alternative Program: Qualified beautifully based on the $250,000 of business deposits flowing into the contractor's bank account.
Many contractors run healthy businesses but report lower taxable income due to legitimate business deductions. Our lender network offers alternative programs to bypass this issue entirely.
We evaluate your most recent 12 to 24 months of bank deposits to determine your true cash flow, ignoring your massive tax write-offs.
If you are a sub-contractor receiving 1099s from larger firms, we can use those 1099s directly to qualify you using a standardized expense ratio.
Provide a simple 12-month P&L statement to show your true operating income. Perfect for contractors with heavy upfront material costs.
Have significant cash reserves from a big job? We can utilize your liquid assets to supplement your monthly qualifying income.
General contractors often manage massive budgets, but sub-contractor payouts and heavy material costs can decimate net income on a tax return. We understand the GC business model. Many GCs choose our Bank Statement Loan program because it allows lenders to evaluate recent gross business deposits rather than relying solely on older, heavily deducted tax returns.
Whether you run a large commercial electrical crew or operate as an independent residential electrician, your income shouldn't stop you from buying a home. Electricians often have heavy vehicle, tool, and copper wire write-offs. A self-employed contractor mortgage allows you to bypass the Schedule C deductions and qualify based on your true gross receipts.
Plumbing contractors face unique overhead costs, including expensive service vans, specialized equipment, and inventory holding costs. If traditional banks are rejecting your mortgage because of these legitimate deductions, we have alternative documentation programs. We can even explore excluding commercial truck payments from your debt-to-income ratio.
The HVAC industry is heavily seasonal. You might have massive deposit months in the summer and winter, with slower shoulder seasons. Traditional underwriting hates fluctuating income. Our alternative income verification mortgages average your deposits out over 12 to 24 months, smoothing out your income and maximizing your purchasing power.
Landscaping contractors are notorious for heavy equipment depreciation. From zero-turn mowers to dump trailers, your tax returns are designed to show minimal profit to save you money. If you receive a large portion of your income via 1099s from commercial clients, we can use those forms directly to qualify you for your next home.
Roofing companies handle enormous material costs (shingles, underlayment, dumpsters). When a bank looks at a roofer's tax return, they often misunderstand the massive cost of goods sold. By using a Profit & Loss statement or your business bank accounts, we strip away the confusion and secure approvals for hard-working roofing contractors.
Breakdowns and walkthroughs by David Sider and Rakesh Jain.
