Frequently Asked Questions
My accountant takes all the deductions they can, which lowers my taxable income â how do I still qualify for a mortgage?
A bank statement loan or 1099 loan qualifies on your actual deposits or gross contractor earnings â not your Schedule C net income. You do not need to reduce your deductions. The Non-QM loan reads the income your accountant did not reduce â your gross revenue.
Can my CPAâs documentation help me qualify for a larger bank statement mortgage?
Yes. A CPA letter documenting your actual business expense ratio â if it is below the standard 50% assumption â can increase your qualifying income. If your actual expenses are 38%, your CPA documents 38%, and the bank statement loan qualifies you on 62% of deposits instead of 50%. This can mean $30,000â$80,000+ in additional loan qualification.
Do I have to change my tax filing strategy to qualify for a Non-QM mortgage?
No. A Non-QM bank statement or 1099 loan is specifically designed so you do not have to change your tax strategy. Your deductions reduce your tax liability. They do not affect your Non-QM loan qualification. Both coexist.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades