Can I buy a house if I am self-employed and my taxes show low income?

Yes. There are programs that qualify you with a 12-month profit and loss statement or with bank statements instead of tax returns. They are designed precisely for the self-employed buyer who deducts a lot and whose taxable income therefore looks small.

What is a bank statement loan?

It is a program where the lender calculates your income from deposits into your account over 12 or 24 months, applying an expense factor. It does not look at your tax returns. It is widely used by business owners, contractors and commission earners.

What is a P&L or profit and loss loan?

It is a program where you provide a profit and loss statement for your business covering the last 12 months, prepared by a tax professional. That document replaces the tax returns. In some programs a licensed CPA is not required: a tax preparer with a PTIN is enough, which saves time and money.

Do I need a licensed CPA to qualify?

Not always. There are programs that accept a profit and loss statement prepared by an accountant or by a tax preparer with a PTIN. That is an important difference, because getting an appointment with a licensed CPA and paying them can cost weeks and hundreds of dollars.

How much down payment do I need as a self-employed buyer?

It depends on the program. If you qualify the traditional way with two years of tax returns, you can access low down payment programs, for those who qualify. On alternative bank statement or P&L programs, the down payment is usually higher and depends on your credit and the loan amount.

Is the rate higher on these programs?

Generally yes, somewhat higher than a traditional conventional loan. That is the price of qualifying without tax returns. The right strategy is to enter with this program and refinance later, once you have payment history and your documents allow a traditional loan.

How long do I need to have been self-employed?

Most programs require two years in the same business or the same line of work. Some accept one year if you come from the same field as an employee. It is worth asking before ruling yourself out.

Does this work if my income is commission or tips?

Yes. Alternative programs work well for variable income: commission, tips, 1099 contracts, rental income. What matters is being able to document the flow, not that it arrives on a W2.

Written by Julian Hernandez

Self-employed mortgages in Florida: how to qualify without tax returns

August 22, 2026

Published August 21, 2026 · By Adrian Colin, licensed mortgage broker in Florida and Texas, NMLS 1684240

There is a conversation I have almost every week, and it always starts the same way: “My business is doing well, I earn well, but the bank told me I did not qualify.”

It is almost never that you earn too little. It is that the system measures your income in a way that does not favor you. And there are programs that measure it differently.

The deduction trap

If you are self-employed, your accountant does their job well: they deduct everything deductible. The truck, the phone, the home office, the equipment, the mileage, the insurance.

The result is that you pay less tax, which is exactly what you wanted. But it also means your taxable income on paper looks small.

When a traditional bank evaluates your application, it looks at the net income line on your returns. If your business moved $180,000 but you reported $52,000 after deductions, the bank only sees $52,000.

That is the whole problem. It is not your ability to pay: it is which number the bank chooses to read.

The three paths you have

Path 1: the traditional route. If your last two years of returns do support the payment, this is the best path, period. Lower rates, low down payment options for those who qualify, and more options. We always check this first, because if you qualify there is no sense paying more.

Path 2: bank statements. The lender calculates your income from 12 or 24 months of deposits into your account, applying an expense factor. Your tax returns never enter the equation.

Path 3: profit and loss statement. You provide a 12-month P&L for your business, prepared by a tax professional. That document replaces the returns.

The P&L detail that actually matters

Here is a difference between programs that can save you weeks.

Many programs require the profit and loss statement to come from a licensed CPA. Getting an appointment, having them agree to sign, and paying them can cost several weeks and several hundred dollars — right when you have a house that could slip away.

The program we work with accepts a profit and loss statement prepared by an accountant or by a tax preparer with a PTIN. No licensed CPA required.

If you already have someone who does your taxes each year, there is a good chance that person can prepare the document. That removes the most frustrating obstacle in the process.

The same program also asks for a single 30-day bank statement for assets, not six months of history.

Who this serves

Business owners with aggressive deductions
Contractors and 1099 workers: construction, transportation, services
Commission income: sales, real estate, insurance
Tip income that is hard to document on a W2
Rental property owners whose income is diluted by depreciation
Independent professionals with several clients and no payroll

What it costs and why

I will be direct: rates on these programs are higher than on a traditional conventional loan. Not dramatically, but higher.

The reason is that Fannie Mae and Freddie Mac do not buy them. The investor takes more risk for documenting differently, and that shows up in the price.

The down payment is usually higher than on the traditional route, depending on your credit and the loan amount. But it is a long way from impossible.

And this is not forever. The smart play is to enter with the alternative program, build payment history, and refinance in a few years into a traditional loan once your documents allow it. We build that plan in the first call.

What you need to get started

Two years of history in the same business or line of work (some programs accept one)
A 12-month profit and loss statement or bank statements, depending on the route
A recent bank statement for assets
Business license or registration, if applicable
Government-issued identification

You do not need everything ready to call us. Knowing your approximate income, approximate credit and how much you have saved is enough for us to tell you where you are headed.

Why a wholesale broker matters here

These programs are rarely in a traditional bank’s catalog. A bank offers what the bank has, and if your file does not fit, the answer is no.

As a wholesale broker we compare among multiple investors, and each one calculates self-employed income with its own formula. The same file can produce very different numbers depending on who you present it to. That is literally our job.

And if reviewing your returns shows you qualify the traditional way, we tell you — even though it means a cheaper loan for you.

Browse the programs in our Casa Catalog, add the ones you are interested in, and leave us your name, phone and email. We review your case at no cost, we never ask for a credit card, and we work in English and Spanish.

Sources

Consumer Financial Protection Bureau — Ability-to-Repay Rule and Qualified Mortgage standards
Wholesale lender product sheet, effective October 31, 2025
IRS — Preparer Tax Identification Number (PTIN) requirements

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Adrian Colin is CEO/President and Loan Officer of Infinity Wholesale Mortgages, LLC, a mortgage broker licensed by the Florida Office of Financial Regulation and the Texas Department of Savings and Mortgage Lending (SML). NMLS #1684240. Company NMLS #2420223.

Informational and educational article. Not a loan commitment, not an offer of credit, and not tax or accounting advice. Programs and requirements change without notice. Third-party lender programs. Subject to credit and property approval, income verification and appraisal. Not available in all states. Equal Housing Opportunity.