Compare income scenarios
See tax-return income alongside an illustrative deposit-based estimate. Adjust expenses and ownership to understand why the results differ.
Compare income estimates →Built around how you earn
Mortgage options
for self-employed borrowers.
You’ve built a business, a practice or a career on your own terms. Let’s make it easier to understand how a lender could look at what you earn.
Submit a scenario opens our secure inquiry form in ARIVE in a new tab.
The short answer
Yes, there can be other ways to document your income.
Tax returns are one way a lender evaluates earnings. Depending on the loan program, bank statements, 1099s or a profit and loss statement may offer another path. You still need to document your finances, and approval depends on the lender’s requirements and your full situation.
Start with the documents you have
Which approach fits your financial picture?
These approaches aren’t interchangeable. Start with a conventional review, then compare alternatives where useful. Documents, costs and eligibility depend on the program and your situation.
| Approach | Documents to discuss | When it may fit | What matters |
|---|---|---|---|
| Tax returns / conventional | Tax returns and supporting income and business records. | When documented earnings support the plan. Start here when the records support the loan you need. | Allowable adjustments, business trends and the full financial picture. Compare this route before assuming another method is a better fit. |
| Bank statements | Business or personal statements, with explanations of eligible deposits. | When deposits tell the story and cash flow is stronger than tax-return income suggests. | Deposits are not automatically qualifying income. Expenses, account type and your share of the business affect the review. |
| 1099 income | 1099s and the supporting records the program requires. | When you work as an independent contractor and your 1099s reflect ongoing income. | How you are paid, income history and expenses still matter; a 1099 total is not necessarily the income used. |
| Profit & loss statement | A profit and loss statement and required supporting business records. | When the business needs a closer look at revenue, expenses and what remains. | Who prepares the statement, the period it covers and the lender’s supporting-document requirements. |
| Assets: two different paths | Account statements, ownership and access details, plus funds needed for closing and reserves. | When substantial eligible assets may support the plan alongside or instead of documented earnings. | Asset depletion estimates asset-derived income for a separate debt-to-income review. Asset qualification evaluates an asset-based formula, which is not a traditional DTI calculation. Formulas and eligible accounts vary. |
- Approach
- Tax returns / conventional
- Documents to discuss
- Tax returns and supporting income and business records.
- When it may fit
- When documented earnings support the plan. Start here when the records support the loan you need.
- What matters
- Allowable adjustments, business trends and the full financial picture. Compare this route before assuming another method is a better fit.
- Approach
- Bank statements
- Documents to discuss
- Business or personal statements, with explanations of eligible deposits.
- When it may fit
- When deposits tell the story and cash flow is stronger than tax-return income suggests.
- What matters
- Deposits are not automatically qualifying income. Expenses, account type and your share of the business affect the review.
- Approach
- 1099 income
- Documents to discuss
- 1099s and the supporting records the program requires.
- When it may fit
- When you work as an independent contractor and your 1099s reflect ongoing income.
- What matters
- How you are paid, income history and expenses still matter; a 1099 total is not necessarily the income used.
- Approach
- Profit & loss statement
- Documents to discuss
- A profit and loss statement and required supporting business records.
- When it may fit
- When the business needs a closer look at revenue, expenses and what remains.
- What matters
- Who prepares the statement, the period it covers and the lender’s supporting-document requirements.
- Approach
- Assets: two different paths
- Documents to discuss
- Account statements, ownership and access details, plus funds needed for closing and reserves.
- When it may fit
- When substantial eligible assets may support the plan alongside or instead of documented earnings.
- What matters
- Asset depletion estimates asset-derived income for a separate debt-to-income review. Asset qualification evaluates an asset-based formula, which is not a traditional DTI calculation. Formulas and eligible accounts vary.
Put your numbers in context
Explore the income approaches.
Explore your bank statements
Estimate the income eligible deposits might support under different expense assumptions. A lender still needs to review the underlying records.
Try the bank statement calculator →These tools illustrate assumptions; they do not select a lender or establish approved income. For an asset-based approach, explore the two tools linked in the comparison above.
A clearer first conversation
You don’t need a perfect file to ask a good question.
Start with the basics. Your team member can help explain which documents are useful for the options you’re considering.
Submit a scenario (opens ARIVE in a new tab)Opens our secure inquiry form in ARIVE in a new tab.Helpful things to know
- 01How you earn and how long you’ve been doing it
- 02Whether deposits go to business or personal accounts
- 03The property you have in mind and where it is
- 04Your approximate down payment and savings
- 05Your goals and your expected timing
Before you decide
A few important distinctions.
Documents and income
Does “without tax returns” mean no documentation?
No. The lender still needs evidence of income or your ability to repay. These options change the documents used; they do not remove the need to verify your finances.
Does every deposit count as income?
No. Transfers between your own accounts, borrowed funds and unusual deposits may need explanation or may be excluded. Business expenses and ownership share can also affect the income a lender uses.
Choosing an approach
Should I still compare a conventional mortgage?
Yes. A conventional mortgage may be a good fit if your documented income supports it. Compare the costs and requirements of the options available to your situation.
How do I choose between bank statements, 1099s and a P&L?
Start with how you are paid and which records accurately explain your earnings. Bank statements show deposits, 1099s report payments and a P&L describes business revenue and expenses. The strongest route depends on the supporting records, the lender’s method and the overall loan terms—not simply the largest income estimate. Compare illustrative income scenarios before discussing the records with us.
Rental property and assets
What if I’m buying a rental property?
Some investment-property loans consider the property’s rental income. Explore DSCR loans to understand how that approach differs from qualifying with your personal income.
Can my savings or investments help if my documented income is limited?
Eligible assets may offer another path, depending on the lender and your situation. Asset depletion estimates income from assets for a separate debt-to-income review. Asset qualification uses an asset-based formula, which is not a traditional DTI calculation. Account access, closing funds and reserves matter; compare the asset depletion and asset qualification examples with our team.