Approved on your P&L. Not your tax returns.
If you're a business owner and a lender said no because your write-offs shrink your income on paper — stay with me. There's an FHA home-loan option that qualifies you on your self-prepared profit & loss statements instead of your tax returns. As little as 3.5% down, and it can be 100% gift.
The self-employed FHA option — at a glance.
A purchase-focused, FHA-based program for business owners who can show income on self-prepared P&Ls. Your final terms depend on your credit, the property, and a full review.
Not a commitment to lend. Figures describe typical program parameters and are subject to full underwriting, AUS findings, and current guidelines.
Two files. Two very different answers.
Tax returns are built to lower your taxable income. That's smart accounting — but it's exactly why good businesses get denied. This program reads your business a different way.
Illustrative only. A credit report is still pulled and assets are still verified; income is averaged from your 2024–2025 P&Ls and checked against your 2026 year-to-date P&L and balance sheet. Final eligibility is subject to automated underwriting and full review — not a commitment to lend.
Built for how business owners actually earn.
You don't fit a W-2 box, so a W-2 loan keeps telling you no. This one is designed around self-employment from the start.
No tax returns
Your income is read from self-prepared P&Ls and a balance sheet — not your 1040s or Schedule C write-offs.
Qualify on your P&L
Two years of profit & loss, averaged over 24 months, tell the real story of a business that's actually working.
Just 3.5% down
Up to 96.5% financing on a primary residence — and the entire down payment can be a gift from an eligible donor.
Sole proprietors & gig OK
No LLC required. Contractors, barbers, landscapers, consultants, agents, and documented rideshare/1099 work can all fit.
“Self-employed and your tax returns are saying no? Here's how.”
I walk through the whole program on camera — the five things it takes to qualify, the paperwork you prepare yourself, and the rules that trip people up. No jargon, no lender names, just the plan.
“Qualify on your P&L, not your tax returns.”
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Five things it takes to qualify.
Here's the whole checklist in plain English. Hit these five and the file has a real path — everything is confirmed in a full review.
Down payment
- As little as 3.5% down (up to 96.5% LTV)
- 100% of your funds to close can be a gift
- Gift letter + 30-day donor statement; not from a business account
Credit
- 640 middle FICO with three scores
- 3 active tradelines open 12+ months
- Authorized-user accounts don't count toward that
Your business
- More than 2 full calendar years self-employed
- You own 25% or more of it
- For a 2026 purchase, active by Jan 1, 2024
- Sole proprietors welcome — no LLC needed
- Documented gig/1099 work may count
Income & documents
- 2024 & 2025 P&Ls, averaged over 24 months
- 2026 year-to-date P&L + current balance sheet
- You prepare, sign, and date them
- No tax returns used to qualify income
Debt-to-income
- Up to 45.99% front-end / 54.99% back-end
- Must pass automated underwriting (AUS)
- No manual underwrite — the file has to approve through the system
A few rules to know
- Primary residence · purchase only
- 1–4 units eligible (ask about down payment on 2–4)
- Seller can credit up to 6% of closing costs
- No mortgage lates · no forbearance
- Verified assets / funds to close required
- Disputes removed; credit must be acceptable
If you run it, you may be able to buy with it.
You don't need a corporation or a fancy title — just two solid years of self-employment you can document. Sound like you?
Contractors
Barbers & stylists
Landscapers
Rideshare & 1099
Consultants & agents
Owner-operatorsAlso: cleaners, painters, mobile mechanics, truck owner-operators, real-estate agents, and more. Documentation varies by business type.
The paperwork is lighter than you think.
No shoebox of tax returns. You prepare, sign, and date these — I'll show you exactly how, and give you clean P&L and balance-sheet templates.
- 2024 & 2025 full-year P&Ls and a 2026 year-to-date P&L
- Current balance sheet for the business
- Proof of 2+ years self-employment — business license, DBA, EIN letter, or business insurance
- ID, and your funds to close (gift letter + donor statement if gifted)
- Business bank statements only if requested for a consistency check
From first message to FHA case number.
Submitting is simple — it's email, no clunky portal. Disclosures typically issue within about 48 hours of a complete file.
Tell me about you
Two minutes on the form below — your business, your rough numbers, and what you want to buy.
I run your scenario
I average your P&Ls, check DTI and credit, and tell you straight whether this fits — real numbers, not "rates from."
Disclosures & case #
We submit by email; disclosures typically issue within ~48 hours. You sign, and we order the FHA case number.
Appraisal → keys
Appraisal and underwriting wrap up, you sign at closing, and the home is yours.
A loan officer who speaks self-employed.
"Your write-offs shouldn't cost you a home. Show me the business you actually run, and I'll find the program that sees it."
I'm Kiri Suykry, Loan Officer at Loan Factory — 20+ years in real estate and mortgages, and a business owner myself. I work in English and Cambodian / Khmer, and I help self-employed buyers across California, from the OC coast to the Inland Empire.
Through Loan Factory's 240+ lender network and AI-powered platform, I shop your scenario and bring you the option that actually works for how you earn — then I walk you through the P&Ls, the gift funds, and the whole file, step by step.
Self-employed FHA questions, answered.
The things business owners ask me most. Have one that's not here? Send it on the form below.
Do I really not need tax returns? +
Do I need an LLC or corporation? +
Can Uber / rideshare / 1099 gig work count? +
How is my income actually calculated? +
Can my down payment be a gift? +
Does it work for a duplex or 2–4 units? +
What can disqualify a file? +
Tell me about your business. I'll tell you if it fits.
Quick, honest reply — usually within one business day. No spam, no call centers, no selling your info.
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Call or text(949) 245-9313
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Emailkiri@loanfactory.com
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CoverageLicensed in California · Loan Factory