Traditional lenders rely on automated underwriting engines built in the 1990s. Those engines look for predictable W-2 income that rises in a straight line. When you’re self-employed, your cash flow naturally ebbs and flows — big deposit in March, slow June, huge spike in December after holiday sales. To a conventional algorithm, that pattern reads as “unstable,” so the computer kicks out a denial before a human ever sees your file.

Big banks also have to sell most of their loans to Fannie Mae or Freddie Mac, which means they must follow strict guidelines: two years of tax returns, no declining income, and debt-to-income ratios under 43%. If your Schedule C shows $50,000 in revenue but $40,000 in write-offs, the system only sees the $10,000 leftover, and the loan amount you qualify for won’t buy a toolshed, let alone a house. That’s not a reflection of your real earning power — it’s a reflection of outdated underwriting boxes.

At NMHL, we’re a direct lender with access to portfolio and Non-QM products that keep approvals in-house. That means we underwrite to common-sense standards: Does your business deposit enough money each month to cover the mortgage? Have you been doing it for at least a year? Great — you qualify.

Bank-statement loans were created for people who make real money but can’t show it on a 1040. Instead of tax returns, we analyze 12 or 24 months of bank statements and apply a simple expense factor — usually 15–50% depending on your industry — to arrive at qualifying income. If you’re a consultant with $20,000 average monthly deposits, we might use 80% of that, giving you $16,000 a month in usable income. On paper, that qualifies you for roughly a $500,000 home with 10% down.

• Personal or business statements accepted
• 12-month program for borrowers with stronger credit
• 24-month program smooths out seasonal dips
• No PMI required, even with 10% down
• Fixed or adjustable rates, 30- or 15-year terms

We’ve helped Uber drivers, freelance coders, OnlyFans creators, and Etsy shop owners close in as little as 21 days using this program. The key is keeping your business funds in one account so we can track the cash flow cleanly.

Maybe you just left a corporate job last year and your new consulting gig pays double, but your tax returns still show the old salary. Or you bought heavy equipment that depreciated, wiping out your taxable profit. In these cases, we can qualify you using either:

1. 1099 Only: Provide the last two years of 1099s and a current year-to-date 1099. We’ll average the income and ignore your tax returns entirely.
2. CPA P&L: A licensed CPA prepares a one-page profit-and-loss statement showing year-to-date revenue and expenses. We’ll use net profit from that statement.

These programs cap out at 90% LTV for credit scores above 680, so you can put as little as 10% down and still secure a competitive rate. We recently helped a marketing consultant in Austin who earned $180,000 net via 1099 but showed only $28,000 taxable income. Using the 1099 program, she qualified for a $550,000 condo with 5% down and a rate just 0.375% above prime.

Timeline panic is normal after a denial — especially if you already found the perfect house. Here’s the realistic roadmap we use every week:

Day 1–2: Upload your last 12 months of business bank statements to our secure portal. No need to organize — we’ll do the math. We’ll also pull a soft credit check that won’t dock your score.

Day 3: Receive your NMHL Loan Blueprint: loan amount, rate range, monthly payment, and cash-to-close. We’ll list two back-up programs in case the first one hits a snag.

Day 4–7: Get pre-approved letter and start shopping. Real-estate agents recognize our letters because we close on time — 96% of our pre-approvals make it to closing.

Day 8–21: Under contract? We order appraisal and title. For self-employed borrowers, we also request a CPA letter confirming your business is active and a YTD P&L. Most CPAs turn this around in 48 hours.

Day 22–30: Final underwriting clears, you sign, and the keys are yours. We’ve closed bank-statement loans in 18 days when the realtor needed a quick close to win a bidding war.

Jasmine, Atlanta: A salon owner who showed $29,000 taxable income on $250,000 revenue. Denied by two national banks. NMHL used 12-month bank statements, qualified her at $17,500 monthly income. Closed on a $410,000 townhome with 10% down and no PMI in 26 days.

Carlos & Luis, San Diego: Partners running a landscaping LLC. Large equipment depreciation pushed taxable income negative. Used 24-month bank-statement program, qualified for $685,000 home, put 15% down, rate locked at 7.0% (0.5% above conventional). They kept their cash for two new trucks.

Rachel, Kansas City: Freelance copywriter, one year out of college, 1099 income $92,000. Traditional lenders wanted two-year history. NMHL 1099 program accepted her first full year of 1099s. Closed on a $315,000 bungalow with 5% down and seller paid closing costs.

Each of these borrowers walked in angry, convinced the system was rigged. They left with keys and a mortgage payment that felt sustainable — because it was based on their real cash flow, not their tax write-offs.

You didn’t start your business to fit inside someone else’s box — and you shouldn’t have to squeeze into an outdated mortgage box either. If you’ve got 12 months of bank statements that prove your income, or a stack of 1099s that show consistent work, you’re already 90% of the way to approval. The missing piece is a lender who actually understands self-employment.

At NMHL, we’ve spent 25 years helping people turn “mortgage denied because I am self employed” into “welcome home.” No judgment, no jargon, just straight answers and fast closings. Upload your statements, schedule a 15-minute call, or simply ask us a question — whatever feels manageable right now. You’ve built a business you’re proud of; let’s get you a front door you’re proud of, too.