★★★★★
Self‑Employed
Home Loans
Qualify using bank statements, a profit and loss statement, 1099s or rental income. Programs starting at 3.5% down. Fast approvals.
Your tax return is not your income.
It is your income after every deduction your CPA legally took. We have programs that read the other set of numbers.
3.5% down
On the P&L FHA program
640
Minimum FICO, three scores
No tax returns
On every program on this page
2 years
Full calendar years in business
Traditional lenders say no. Your own bank does not know this program exists.
Every write-off that saved you money in April is the same write-off that sinks you in underwriting, because a full-doc lender reads line 31 of your Schedule C and calls that your income. You know what your business actually produced. So do we. Here is what changes when the file is read correctly.
Tap any card to open it.
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01
No tax returns. At all.
On every program on this page, your personal and business tax returns are not the qualifying document. Income comes from a profit and loss statement, from deposits into your business account, from your 1099s, or from what the property itself rents for.
This is not a loophole and it is not a lower tier of financing. It is a documented, underwritten loan that reads a different set of records than a W‑2 file does, because a business owner's records are different.
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3.5% down, on a self‑prepared P&L.
The flagship here is an FHA purchase loan that qualifies you off profit and loss statements you prepare yourself. No CPA letter required to build them. It is the lowest down payment on the board for a self-employed borrower, and almost nobody in the market has it.
You need two full calendar years of business behind you, a 640 with three scores, and a clean set of P&Ls with a balance sheet. That is the shape of the file.
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03
The whole down payment can be a gift.
You do not have to have saved it yourself. The full down payment may come as a documented gift from a qualifying family member: parent, sibling, aunt or uncle, grandparent.
The documentation matters. If the donor is covering the down payment or cash to close, we need 30 days on the donor's statement, and the money cannot come straight out of a donor's business account. If you are bringing your own cash to close, we need 60 days of verification. We will walk you through exactly which pages to pull.
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04
Charge‑offs are not a dealbreaker.
A charge-off sitting on the report is not an automatic decline on this program. Collections get counted into your ratios at a small percentage rather than killing the file outright.
What does stop the file is a dispute flag, even on an account that is current. Every dispute has to come off the report before the file can move. If there are disputes on yours right now, tell us early, because that is a timeline item, not a decline.
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Deposits can be the income.
On a bank statement loan, income is calculated from the deposits into your business account over a set look-back period, typically twelve months, with an expense factor applied. If the money moved through the account, it counts toward what you qualify for.
This is the right program for a business with strong, steady revenue and an aggressive tax strategy, and it is the one most people mean when they say "stated income", except it is fully documented and fully underwritten.
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The rental can qualify itself.
On an investment purchase, we can qualify on the subject property's rental income instead of your personal income, with 25% or more down. Your tax returns, your W‑2s and your debt-to-income ratio come off the table.
For an investor who already owns property, this is usually the only structure that scales, because a full-doc lender will eventually run out of room in your ratios no matter how well the portfolio performs.
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You do not have to change how you file.
The usual advice is to spend two years reporting more income and paying more tax so a lender will approve you. That is a real strategy and for some people it is the right one, and we will say so when it is.
But it costs you two years and a tax bill, and for most business owners it is not necessary. Run the P&L path or the bank statement path and your accountant keeps doing their job while you buy the house.
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Ownership share sets the income.
You need to own at least 25% of the business. Beyond that, the P&L income is split by ownership: two owners means half the P&L income is usable to you, three names means a third, and so on. Everybody listed on the Secretary of State filing counts as an owner.
Knowing that up front changes which house you shop for. It is exactly the kind of thing that should surface in week one, not in underwriting.
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09
Your business address can be your house.
Running the business from a residence does not disqualify you. What underwriting is looking for is that the entity is real and has been real for more than two full calendar years: an active entity on the Secretary of State record, or a verifiable business or professional license that predates 2024.
Certain fields do need business insurance in the file, construction and landscape among them. We will tell you in the first conversation whether yours is one of them.
And the honest trade. Programs that do not read tax returns price differently than a full-doc conventional loan does, and FHA carries mortgage insurance upfront and monthly. If your returns actually do support a conventional approval, that is very often the cheaper loan and we will tell you so before you apply, not after. Run your own numbers on the mortgage calculator.
Three ways to prove income. We match the one that fits your situation.
None of these is better than the others. They are different, and one of them fits your file. Here they are side by side so you can see what each one asks of you and what each one gives back. Tap any box for the detail.
P&L FHA
Bank Statement
Investor Flex
✓3.5% DownThe lowest down payment on this page, and it can be gifted.More
–More Down RequiredSet by credit, loan size and property. We get you the best of it.More
✗25% or More DownThe most cash in, in exchange for the loosest income test.More
–30 to 35 DaysSlower than the others. Write the offer accordingly.More
✓21 DaysFast, because the income math is already in your statements.More
✓21 DaysNo personal income to verify, so the file moves quickly.More
✓Profit & Loss StatementsTwo full years plus year to date, self-prepared, with a balance sheet.More
✓12 Months of DepositsThe average of what actually landed in the business account.More
✓The Property's Own RentThe house qualifies. You do not have to.More
✓640 FICO, Three ScoresA published floor, with three tradelines seasoned 12 months.More
–Score Drives the TermsYour score sets the pricing. We know what it is worth.More
–Score Drives the TermsCredit prices the loan. The property qualifies it.More
–2 Full Calendar YearsA hard line, and it is calendar years, not months.More
–Seasoning RequiredThe deposit history has to be long enough to mean something.More
✓Least RestrictiveYour business history is not what is being underwritten.More
–Primary ResidenceThe house you live in, not a rental.More
✓Widest Range of UsesThe most flexible of the three on property type.More
✗Investment OnlyRentals. Not the home you move into.More
✗FHA Mortgage InsuranceUpfront and monthly. The price of the 3.5% door.More
✓No Monthly MINo separate insurance line on the payment.More
✓No Monthly MINothing added to the payment for insurance.More
–Ratios Still ApplyReal DTI math, with specific rules on collections and student loans.More
–Ratios Still ApplyMeasured against deposit income instead of a tax return.More
✓No Personal DTIYour personal ratios never enter the file.More
✓100% Gift AllowedAll of it can come from family, with the right paperwork.More
–Gifts With ConditionsAllowed, with more strings than the FHA program.More
–Reserves ExpectedMoney after closing matters, not just money at closing.More
✓ Advantage
– Depends on the file
✗ Costs you more
No column wins this table. Every one of these trades something. The FHA program has the lowest down payment and pays for it with mortgage insurance and a longer close. The bank statement program closes fast and asks for more money down. The investor program does not look at your income at all and asks for the most down. We are not steering you to one of them. We read your situation and tell you which one your file actually fits.
General comparison of program features. Requirements, fees, premiums, down payment minimums and availability vary by program, loan amount, term, occupancy, property type, credit profile and county, and are subject to change without notice. Not an offer of credit.
Self‑employed lending is what we do. You only need one call.
Most people who have been told no were never told why, and were never told what would have worked instead. These programs have specific rules. The difference between a file that closes and a file that dies is usually one detail somebody did not know to ask about.
Here is what we bring. We carry all of these programs, we know which one your situation fits before you fill anything out, and we get you the best terms available in the market on it. And because we are also a licensed real estate brokerage, the loan and the purchase run under one roof, with one team that has all the answers. One call, start to keys.
Check Your EligibilityTypes of self‑employed loans.
Same buyer, different records. One of these reads your file correctly.
Lowest down payment
P&L FHA Purchase, 3.5% down
Qualify on two years of self-prepared profit and loss statements with a year-to-date P&L and a current balance sheet. The lowest down payment available to a self-employed buyer, and the down payment can be 100% gifted.
What proves income2024 P&L, 2025 P&L, 2026 YTD P&L, balance sheet
Most flexible
Bank Statement Loans
Qualify with the average of twelve months of deposits into your business account, with an expense factor applied. Built for a business with real revenue and an aggressive, perfectly legal tax strategy.
What proves income12 months of business bank statements
Investors
Investor Flex
Purchase investment property with 25% or more down and qualify on the subject property's rental income. No personal income documentation and no personal debt-to-income calculation.
What proves incomeThe subject property's rent
Contractors
1099 Income Loans
For the independent contractor who gets 1099s rather than running an entity. Income comes off the 1099s themselves rather than off a return that has already had every deduction taken out of it.
What proves incomeYour 1099 forms
Asset heavy
Asset Based Qualification
For the borrower whose balance sheet is strong and whose income statement is complicated. Qualifying income is drawn from documented liquid assets instead of from an earnings record.
What proves incomeDocumented liquid assets
Also on the shelf
Conventional, FHA, VA and Jumbo
If your returns actually do support a traditional approval, that is very often the cheaper loan and we will tell you so. We write those too, which is exactly why we can be straight with you about which one wins.
What proves incomeTax returns and W‑2s, the conventional way
We are not picking for you. We read your situation, put the options in front of you with the real numbers on each one, and tell you which one your file fits. Compare the payments yourself on the mortgage calculator.
What you actually hand us on the 3.5% down program.
Four documents carry the income. You can prepare them yourself. No CPA letter required to build them.
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Full year 2024 P&L
A complete calendar year, top to bottom.
02
Full year 2025 P&L
The second complete calendar year.
03
2026 year‑to‑date P&L
Current through the most recent full month.
04
Current balance sheet
Assets and liabilities as they stand today.
One set only. Only one set of P&Ls can carry the income, even if there is more than one borrower, and it cannot be combined with a verification of employment. If you own more than one business, we still need a P&L set for each one, because a loss in the second business gets deducted from the income in the first. Better to find that in week one than in underwriting.
What the 3.5% down program asks for.
The published guidelines, in plain language, so you can check yourself against them before you spend an hour on an application.
- 640 minimum FICO, with three scores on file
- More than two full calendar years of self-employment, shown by an active entity on the Secretary of State record or a verifiable business or professional license predating 2024
- Three active tradelines open at least twelve months
- At least 25% ownership of the business
- 100% gift funds allowed from a qualifying family member
- Charge‑offs are acceptable, and a business address may be a residence
And what stops a file.
Worth knowing now rather than three weeks in. Most of these are fixable, and a few are timing items rather than declines.
- Any dispute on the credit report, even a current account. All disputes must come off first
- Any mortgage late, including on a second or a HELOC
- A bankruptcy during the life of the business
- Declining income across the P&L years
- Forbearance of any kind
- A second FHA loan. If you hold FHA on another property, the file goes full doc unless that property is sold
- Rental income from other properties, and income from a permitted ADU, cannot be used to qualify
A stop is not a decline. Disputes come off. Late payments season. Income stabilizes. If something on the right-hand list is sitting on your file today, the useful move is to find out now what it takes to clear it and how long that takes, so you are shopping on a real timeline instead of a hopeful one. That conversation costs you nothing.
The people this was built for.
Over a decade of this work, the same conversation keeps happening. Someone who runs a real business, with real revenue, gets told no by a lender reading the wrong page of their file.
Contractors and trades. Restaurant and salon owners. Realtors and loan officers. Truckers and owner‑operators. Consultants, therapists, dentists, designers. Gig and 1099 earners. Investors with a portfolio and no room left in their ratios. Anybody whose accountant did their job well.
We know what running a business looks like from the inside, because we run one. The goal is simple: make the mortgage process fast, transparent and achievable for a self‑employed borrower, and turn "I can't qualify" into "I'm approved."
21 days on most of these.
30 to 35 on the P&L FHA program.
21days
Bank Statement
Bank Statement
21days
Investor Flex
Investor Flex
30‑35days
P&L FHA
P&L FHA
Self‑employed files have a reputation for dragging. They drag when the documents get requested one at a time. We ask for the whole set up front and work it in parallel, and we tell you the real timeline for your program before the offer goes out, not after.
01
Tell us how you get paid
Ten questions, about a minute, no credit pull. We come back with which of the programs your file actually fits and what each one would ask of you.
02
Pull the documents once
You get one list, not six emails. P&Ls and a balance sheet, or twelve months of statements, or the 1099s, depending on the path that fits.
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We bring you the options
We match your file to the program it actually fits and get you the best terms available in the market on it. You see the real options side by side, with real numbers, and you pick the winner.
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Underwriting and keys
Appraisal, conditions and clear to close, with one team running both the loan and the purchase. You are talking to the person who owns the outcome.
A target, not a promise. These are what a complete file and cooperative third parties produce, and they are what we run to. They are not guarantees, and anyone who guarantees you a closing date has not met your appraiser. What we will do is tell you the real timeline for your program before your offer goes out, so the contract is written on a date that can actually happen.
Learn it before you need it.
A recurring self-employed financing webinar, plus a short on-demand library. No pitch, no signup wall on the videos.
Start here. The self-employed explainer.
Why your tax return is not your income
How to build a P&L an underwriter will accept
Bank statement loans, how the deposit math works
Investor Flex, qualifying on the rent instead of on you
Gift funds, the donor rules that actually get files declined
Credit disputes, the silent file killer
Partners and ownership percentage, what it does to your income
Should you just report more income for two years?
Video library is being recorded. Cards will link to each session as it publishes.
Frequently asked questions.
Answers to the questions that come up before starting a home loan with us.
Do you really not look at my tax returns?
On the programs on this page, correct. Income is documented from profit and loss statements, from business bank deposits, from 1099s, or from the subject property's rent. Your returns are not the qualifying document. We do still verify that the business is real and has been real for the required period, and we still underwrite the file properly. This is documented lending, not stated income.
What types of loans do you offer?
We specialize in a range of mortgage options, from traditional Conventional, FHA and VA loans through non-traditional self-employment and investor programs. If a conventional loan is the better deal for your file, we will say so and write that instead.
How long does the mortgage approval process take?
The upfront process typically takes between three and seven days, depending on how quickly you apply and provide the documentation. From there we run to a closing under 21 days on a complete file. The single biggest variable is how fast the documents arrive, which is why we hand you one complete list instead of asking one item at a time.
Will my loan application be optimized for the best rate?
Yes. We work with you to secure the most competitive terms available in the market for your financial profile and the type of mortgage you are applying for. Self-employed pricing is not one number. It moves with the program, the documentation type, the down payment and the score, and knowing where your file lands best is exactly the expertise you are hiring us for.
I write off almost everything. Is that a problem?
It is a problem for a full-doc lender and it is the entire reason these programs exist. Keep the tax strategy. We will document income a different way. The one place aggressive filing still matters is if your P&L shows declining income year over year, because that is looked at closely regardless of which program you use.
My partner and I own the business together. How does that work?
You need to own at least 25%. Beyond that, P&L income is allocated by ownership share, so two owners means half the P&L income is usable to you and three owners means a third. Everyone listed on the Secretary of State filing counts as an owner. It is worth knowing this before you set a price range, because it changes the number.
Can my parents give me the down payment?
On the P&L FHA program, the entire down payment can be a documented gift from a qualifying family member: parent, sibling, aunt or uncle, grandparent. The donor's statement needs 30 days of history, and the money cannot come directly out of a donor's business account. If you are bringing your own cash to close, that needs 60 days of verification. These are the rules that quietly sink files, so we set them up correctly from day one.
I have a collection and a charge‑off. Am I out?
Not automatically. Charge-offs are not an issue on the P&L FHA program, and collections are counted into your debt-to-income at a small percentage of the balance rather than disqualifying the file. What does stop it is a dispute flag on the report, even on an account that is current. Every dispute has to be removed before the file can move, so tell us early and we will build the timeline around it.
Can you help with refinancing existing loans?
Yes. We offer refinancing options to reduce a monthly payment or improve a rate, as well as cash-out refinances, and the same self-employed documentation paths apply on a refinance.
Do you provide ongoing support after the loan is approved?
Yes. Our team offers continuous support through the life of your loan, keeping you informed about your mortgage and about any opportunity worth acting on later. FHA mortgage insurance in particular is a reason to stay in touch, because refinancing out of it once you have equity is a real move and it needs someone watching for the window.
What do I need to provide to get started?
Start with the eligibility check on this page. It is nine questions, takes about a minute and does not pull your credit. From your answers we will tell you which program fits and send you the exact document list for that path rather than a generic one.
Do you only work in San Diego?
We are based in San Diego and licensed across California. Tell us where you are buying in the eligibility check and we will confirm on the first call.
★★★★★
Find out where you stand before you fall in love with a house.
Nine questions. About a minute. No credit pull, and a licensed loan officer comes back to you with which program fits and what it would take.
1st Choice Home Team is not a government agency and is not affiliated with, endorsed, sponsored or approved by the Federal Housing Administration, the U.S. Department of Housing and Urban Development, or any other government agency. Jorge Antonio Murillo, Broker/Owner.
All loans are subject to credit approval, income and asset verification, appraisal and program guidelines. Not all applicants will qualify. Program terms, guidelines, premiums, down payment requirements and availability are subject to change without notice. A 3.5% minimum down payment applies to qualifying FHA borrowers meeting the published credit and documentation requirements of this program; borrowers who do not meet them may be required to make a larger down payment or may not qualify. Credit score, tradeline, time-in-business, ownership, documentation and gift-fund requirements described on this page reflect the guidelines of the loan program referenced and the minimums of the lending programs we are approved to originate, not a guarantee of approval. FHA loans require an upfront mortgage insurance premium and an annual mortgage insurance premium collected monthly; the annual premium generally continues for the life of the loan where the original loan-to-value exceeds 90%. Programs that qualify income without tax returns, including bank statement, 1099, asset-based and investor rental-income programs, are not government-insured, carry their own guidelines and are priced differently than fully documented conventional financing. Closing timelines referenced are targets based on a complete file and cooperative third parties, not a guarantee. Nothing on this page is an offer of credit, a commitment to lend, or an advertisement of specific credit terms.
Representative examples. Rates and terms shown are as of September 14, 2026, are for illustration only, and are subject to change without notice. Your rate, points, payment and APR will depend on your credit, loan amount, down payment, occupancy, property type, term and program. This is not an offer of credit or a commitment to lend.
Profit & Loss FHA purchase. Purchase price $750,000 with a 3.5% down payment of $26,250. Base loan amount $723,750 plus a financed FHA upfront mortgage insurance premium of 1.75% ($12,665.63), for a total loan amount of $736,415.63. 30‑year fixed interest rate of 7.250% with 3.500 total points ($25,774.55) paid at closing. 360 monthly principal and interest payments of $5,023.65, plus an FHA annual mortgage insurance premium of $331.72 per month continuing for the life of the loan. Annual percentage rate 8.554%. Estimated total monthly payment including estimated property taxes of $781.25 and homeowners insurance of $220.00 is $6,356.62. Payment shown does not include HOA dues, Mello‑Roos or other assessments; your actual obligation may be greater.
Bank Statement purchase. Purchase price $750,000 with a 15% down payment of $112,500. Loan amount $637,500. 30‑year fixed interest rate of 8.250% with 2.000 points ($12,750.00) paid at closing. 360 monthly principal and interest payments of $4,789.32. No monthly mortgage insurance. Annual percentage rate 8.553%. Estimated total monthly payment including estimated property taxes of $781.25 and homeowners insurance of $220.00 is $5,790.57. Payment shown does not include HOA dues, Mello‑Roos or other assessments; your actual obligation may be greater.
Asset Based purchase. Purchase price $750,000 with a 15% down payment of $112,500. Loan amount $637,500. 30‑year fixed interest rate of 8.250% with 2.000 points ($12,750.00) paid at closing. 360 monthly principal and interest payments of $4,789.32. No monthly mortgage insurance. Annual percentage rate 8.553%. Estimated total monthly payment including estimated property taxes of $781.25 and homeowners insurance of $220.00 is $5,790.57. Payment shown does not include HOA dues, Mello‑Roos or other assessments; your actual obligation may be greater.
Examples assume a primary residence in San Diego County, a qualifying credit profile, estimated property taxes at 1.25% of the purchase price annually, homeowners insurance of $220.00 per month, no HOA dues, and 15 days of prepaid interest. Finance charges included in the APR calculation are the discount points shown, an underwriting fee of $1,295, a processing fee of $1,395, a tax service fee of $85, prepaid interest, and on the FHA example both the upfront mortgage insurance premium and the annual mortgage insurance premium collected monthly for the life of the loan. Third party charges that are not finance charges, including appraisal, title and escrow, and recording fees, are excluded from the APR. Amounts are estimates and are not a Loan Estimate.
Licensing information available at NMLS Consumer Access, www.nmlsconsumeraccess.org. Equal Housing Opportunity.
See If You Qualify
Answer a few quick questions to see if you meet the basic requirements
Are you self‑employed?
Have you been self‑employed for more than 2 full calendar years?
Is your FICO score 640 or higher?
What is your FICO score?
What type of loan are you needing?
Will you be living in the home?
How soon are you looking to start?
Which self‑employed home loan are you interested in?
What type of business do you own?
What is your ownership percentage of the business?
Roughly what is your monthly gross income, or your monthly gross business deposits?
Before expenses and before write-offs. A ballpark is fine, it just helps us point you at the right program.
Complete the contact form to schedule your call.
A Self‑Employed Home Loan Specialist will reach out with where you stand and what fits.
No credit pull. We do not sell your information.
★★★★★
Got it. Thank you.
Thank you for taking the time to complete this survey. A Self‑Employed Home Loan Specialist is going to look at your answers and come back to you with where you stand, which program fits, and what the next move is.
Not a fit today.
Thank you for taking the time to complete this form, unfortunately you do not meet the basic requirements at this time.
Call the office anywayYour responses
Representative example, Profit & Loss FHA purchase. Purchase price $750,000 with a 3.5% down payment of $26,250. Base loan amount $723,750 plus a financed FHA upfront mortgage insurance premium of 1.75% ($12,665.63), for a total loan amount of $736,415.63. 30‑year fixed interest rate of 7.250% with 3.500 total points ($25,774.55) paid at closing. 360 monthly principal and interest payments of $5,023.65, plus an FHA annual mortgage insurance premium of $331.72 per month continuing for the life of the loan. Annual percentage rate 8.554%.
Rates and terms are as of September 14, 2026, are for illustration only, and are subject to change without notice. Your rate, points, payment and APR will depend on your credit, loan amount, down payment, occupancy, property type, term and program. This is not an offer of credit or a commitment to lend. All loans are subject to credit approval, income and asset verification, appraisal and program guidelines. Not all applicants will qualify.
Equal Housing Opportunity. Jorge Antonio Murillo, Broker/Owner, NMLS #465588, DRE #02038407. 1st Choice Home Team, NMLS #1631472, DRE #02191768, DFPI #60DBO71692. 1st Choice Home Team is not a government agency and is not affiliated with, endorsed, sponsored or approved by the Federal Housing Administration, the U.S. Department of Housing and Urban Development, or any other government agency. Full disclosures, including the Bank Statement and Asset Based examples and the APR assumptions, are published at the foot of this page.
Representative example, Profit & Loss FHA purchase. Purchase price $750,000 with a 3.5% down payment of $26,250. Base loan amount $723,750 plus a financed FHA upfront mortgage insurance premium of 1.75% ($12,665.63), for a total loan amount of $736,415.63. 30‑year fixed interest rate of 7.250% with 3.500 total points ($25,774.55) paid at closing. 360 monthly principal and interest payments of $5,023.65, plus an FHA annual mortgage insurance premium of $331.72 per month continuing for the life of the loan. Annual percentage rate 8.554%.
Rates and terms are as of September 14, 2026, are for illustration only, and are subject to change without notice. Your rate, points, payment and APR will depend on your credit, loan amount, down payment, occupancy, property type, term and program. This is not an offer of credit or a commitment to lend. All loans are subject to credit approval, income and asset verification, appraisal and program guidelines. Not all applicants will qualify.
Equal Housing Opportunity. Jorge Antonio Murillo, Broker/Owner, NMLS #465588, DRE #02038407. 1st Choice Home Team, NMLS #1631472, DRE #02191768, DFPI #60DBO71692. 1st Choice Home Team is not a government agency and is not affiliated with, endorsed, sponsored or approved by the Federal Housing Administration, the U.S. Department of Housing and Urban Development, or any other government agency. Full disclosures, including the Bank Statement and Asset Based examples and the APR assumptions, are published at the foot of this page.