Frequently Asked Questions

Why does my tax return show lower income than I actually earned as a carpenter?

Your tax return reflects net taxable income after all legitimate business deductions — vehicles, tools, equipment, insurance, depreciation. Your accountant’s job is to minimize your tax liability, which legally reduces the income figure on your return. A bank statement loan bypasses this by qualifying income from actual bank deposits instead.

What is an expense ratio and how does it affect my bank statement loan?

The expense ratio is the percentage of your business deposits attributed to operating costs. Most programs default to 50%. If your actual expense ratio is lower — which many service-based carpentry businesses are — a CPA letter documenting your real ratio increases the percentage of deposits counted as qualifying income.

How much can a self-employed carpenter borrow with a bank statement loan?

It depends on your average monthly deposits, credit score, and down payment. The best way to know your specific qualification is a pre-qualification conversation with a Non-QM loan officer who will calculate your qualifying income from your actual deposit history.

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.

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