Getting a Mortgage When You’re Self-Employed in Arkansas

Standard Fannie/Freddie rules, why aggressive write-offs wreck qualification, and non-QM alternatives.

The self-employed qualification paradox

Self-employed borrowers face a structural problem: the tax code rewards maximum deductions, but mortgage underwriting rewards maximum reported income. Aggressive tax strategy that serves you in April can torpedo you at mortgage application.

Non-QM alternatives

Bank statement loans, profit-and-loss-only loans, and 1099-only loans bypass the tax-return income calculation entirely. They qualify on deposits (12-24 months of personal or business bank statements) and count 50-90% of deposits as qualifying income depending on the program and business type.