Self-Employed & Non-QM Loans in NC, SC & GA
If you work for yourself and your tax returns understate what you really earn, a standard loan can lowball you. There are programs that qualify you on your actual cash flow instead. Here's how they work.
How it works.
For a standard loan, underwriters use the net income on your last two years of returns, plus certain add-backs like depreciation, averaged over 24 months. When heavy write-offs make that number too low, we can shop non-QM options: bank statement loans (using 12 to 24 months of deposits and a set expense factor instead of your returns), profit-and-loss loans (your CPA's P&L carries the file), 1099-only programs, and asset depletion (turning a large nest egg into qualifying income). These are for the right situation, and we pick the one that fits.
Who it's best for.
Business owners, 1099 contractors, and self-employed borrowers whose returns don't tell the whole story.
What you'll typically need.
- Two years of personal and business returns for the standard path, or 12 to 24 months of bank statements and a CPA-prepared P&L for the non-QM path
Common questions.
Do lenders use my gross or net income?
Net, plus add-backs, on a standard loan. Bank statement loans look at deposits instead.
Can I qualify with only one year self-employed?
Sometimes, with a longer track record in the business or a prior job in the same field. It's lender-specific.
Sources: Fannie Mae Selling Guide; FHA Handbook 4000.1.
Ready to see if this fits?
Schedule a free consultation and we'll walk through your numbers, or start an application when you're ready to move.
Articles about Self-Employed / Non-QM
- Self-Employed & InvestorsDSCR Loans for Carolina Rental Investors, in Plain EnglishA DSCR loan qualifies on the rental property's income, not your personal tax returns. Here's how Carolina investors use them to grow a portfolio.
- Self-Employed & InvestorsBank Statement Loans: Qualifying When Your Tax Returns Say Less Than You EarnSelf-employed and your tax returns understate your income? A bank statement loan can qualify you on your deposits instead. Here's how it works in NC and SC.
- Self-Employed & InvestorsSelf-Employed in the Carolinas? How Underwriters Actually Read Your Tax ReturnsSelf-employed and worried you can't qualify for a mortgage in NC or SC? Here's how underwriters really read your tax returns, and your options when they understate your income.
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A note on program availability & disclosures
Program eligibility, guidelines, and pricing are set by the applicable investor, agency, or program (FHA, VA, USDA, Fannie Mae, Freddie Mac, and others) and are subject to change without notice. Not all applicants will qualify. This information is for educational purposes only and is not a commitment to lend or a guarantee of approval, rate, payment, or closing date. Equal Housing Opportunity.
Let's find the right fit.
One 30-minute call is usually all it takes to narrow the field and pick the right program.
Keith Lopez, NMLS #2814077 | NEXA Mortgage, LLC, NMLS #1660690 | Licensed in NC, SC & GA | Equal Housing Opportunity