Self-employed borrowers have a ton of great mortgage options — bank statement loans, 1099 loans, P&L programs — but they come with one big caveat: you’re usually going to need at least 10% down. In this video I break down why that is and why it actually makes a lot of sense. Here’s the short version 👇 Alt doc programs don’t use your tax returns to verify income. Instead, lenders use bank statements, 1099s, or a CPA-prepared profit & loss. Because the income verification is less traditional, lenders offset their risk by requiring more equity upfront — typically 10% minimum, sometimes more depending on the program and your credit profile. And here’s the tax angle worth thinking about: Most self-employed borrowers who need an alt doc loan are using that program because they write off a lot of expenses. Lower taxable income = lower verified income on a conventional loan. That’s great for your tax bill. But it means you need to be disciplined about saving, too — both for taxes AND for your down payment. The borrowers who do this well are the ones planning ahead. Not scrambling at contract time. If you’re self-employed and thinking about buying in the next 6–12 months, let’s talk now — before you file your next return. 💬 DM me “ALTDOC” or subscribe below for weekly mortgage tips: 👉 truebluelending.net/rates#subscribe — Jesse Gonzalez | President True Blue Lending Corporation NMLS #278103 | Company NMLS #2380218 Licensed in California & Florida
