1099 Contractor Buys in Phoenix With Bank Statements
Illustrative borrower: a 1099 IT contractor in Phoenix, AZ with strong deposits but tax returns minimized by business write-offs.
The challenge
Two years of tax returns showed far less income than his actual cash flow, which killed his conventional loan application, the underwriter could only use the after-write-off number.
The structure
Loan type: Bank statement loan (non-QM, primary residence)
A 12-month bank statement loan qualified him on deposits instead of taxable income. A CPA letter verified two years of self-employment, and 10% down plus reserves satisfied the investor guidelines.
The outcome (illustrative)
- Approved on bank-statement income the conventional underwriter could not count.
- Closed as a primary residence purchase with 10% down.
- No tax returns required for income qualification.
Figures above are hypothetical and for education only. Your terms depend on credit, property, program guidelines, and market conditions at the time you apply, confirmed in a Loan Estimate, never on this page.
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