Self-Employed & Alt-Doc Mortgage Loans
Standard tax returns don't always reflect your true financial strength. Our Alt-Doc programs, including 12- and 24-month bank statement loans, allow self-employed entrepreneurs and 1099 contractors to qualify without standard documentation.
Self-Employed & Alt-Doc Loans for Modern Entrepreneurs
Standard mortgage guidelines often penalize business owners for taking legitimate tax deductions. At MMC Lending, we believe your ability to afford a home should be measured by your real-world cash flow, not just the bottom line on your tax return.
Our Alternative Documentation (Alt-Doc) programs are specifically designed for the 16 million Americans who are self-employed, providing a streamlined path to homeownership without the need for traditional W-2s.
How Alt-Doc & Bank Statement Loans Work
Unlike conventional loans that require two years of tax returns, these programs use alternative methods to verify your ability to repay:
- Bank Statement Analysis: We review 12 or 24 months of personal or business bank statements to calculate your average monthly qualifying income based on total deposits.
- Profit & Loss (P&L) Statements: In some cases, a CPA-prepared P&L statement can serve as the primary income document.
- No Income, No Ratio: For high-net-worth individuals, we offer "No Ratio" options for primary and second homes, focusing on assets and credit rather than a debt-to-income calculation.
Key Features and Benefits
Qualify with Cash Flow:
Use your gross business deposits instead of net taxable income.
Loan Amounts up to 3M:
High-leverage options available for luxury primary residences and second homes.
Flexible FICO Requirements:
Programs available for credit scores as low as 620\.
Debt Consolidation:
Use a cash-out refinance to simplify your business or personal finances.
Interest-Only Options:
Maximize your monthly cash flow with interest-only payment periods.
Who This Loan Is Best For
Business Owners:
Entrepreneurs who utilize tax write-offs that lower their reported taxable income.
1099 Contractors:
Freelancers and gig-economy workers with non-traditional income streams.
High-Net-Worth Individuals:
Borrowers with complex financial structures who prefer not to disclose traditional income.
Consultants & Realtors:
Professionals with fluctuating monthly income who have strong annual averages.
Basic Loan Terms and Options
Loan Amounts: | From 100,000 to $3,000,000. |
LTV Limits: | Up to 90% LTV for purchases; up to 80% for cash-out refinances. |
Occupancy: | Primary residences and second homes. |
Product Types: | 30-year fixed-rate and various ARM options (5/6, 7/6, 10/6). |
Eligibility Requirements
- Income Verification:
12–24 months of bank statements or CPA-verified P\&L.
- Credit Profile:
Minimum FICO scores typically starting at 620–640 depending on the specific program.
- Housing History:
Must demonstrate a clean housing payment history (0x30) over the last 12 months.
- Reserves:
Typically requires 3–9 months of liquid reserves (PITIA) depending on loan size.
Advantages and Trade-Offs
Advantages
- Bypass the "Qualified Mortgage" (QM) boxes that cause most traditional denials.
- Faster approval for complex income types due to specialized manual underwriting.
Considerations
- Interest rates may be slightly higher than traditional conforming loans to account for the alternative documentation.
- Some programs may require a higher down payment compared to standard FHA or VA options.
Why Work With MMC Lending
Non-QM Experts:
We specialize in the programs that big banks often reject.
Fast Pre-Approvals:
Our team understands how to read business bank statements and P\&Ls to give you an answer quickly.
Personalized Strategy:
We don't just sell a loan; we help you find the specific Alt-Doc program that matches your business structure.
Ready to Get Started?
Take the first step toward your Self-Employed & Alt-Doc Mortgage Loans. Our experienced loan officers are here to guide you through every step.