Alternative Documentation: P&L, 1099, and Bank Statements
Qualify using real income, not just tax returns.
If your income isn’t reflected in traditional tax returns, you may still qualify for a mortgage through alternative documentation. These loan programs are designed for self-employed individuals and others with non-W-2 income, allowing qualification based on profit and loss statements, 1099s, or bank statements. This is a flexible path to homeownership for business owners, freelancers, and independent contractors.
Alternative Documentation Loans Are Good For:
These loans are ideal for self-employed buyers, business owners, and 1099 earners who don’t have traditional W-2 income. They’re also a strong fit for borrowers who prefer to qualify using bank statements, 1099 earnings or profit and loss documentation.
Alternative Documentation Loan Details
Alternative documentation loans are considered non-QM (non-qualified mortgage). These programs allow borrowers to qualify without traditional income documentation, focusing instead on actual earnings and cash flow.
Borrowers can use a CPA-prepared profit and loss statement with supporting documents. This method works well for small business owners whose tax returns understate actual income due to deductions.
For independent contractors and freelancers, 1099-only loans accept one to two years of 1099 forms to establish income. This approach is helpful when tax write-offs reduce reported income but do not reflect actual earnings potential.
These loans calculate income based on 12 to 24 months of bank statements. Lenders use a percentage of monthly average deposits to determine qualifying income, making this a great choice for those with inconsistent income or multiple streams.
Secure Your Alternative Documentation Loan at One of Our Branches
If you are self-employed or have a unique income situation, we are here to help. Our experienced team will walk you through your options, explain the requirements, and make the process smooth from application to closing. Reach out today and let’s find a solution that works for you.
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Whether you’re looking to buy or refinance, we have a loan program for you. Get started on the road to accomplishing your mortgage needs with us at Absolute Home Mortgage.