Yes. Electricians, plumbers and HVAC techs can qualify for a mortgage with 12 or 24 months of bank statements instead of tax returns. The lender adds up your business deposits, takes out an expense factor for your costs, and uses what is left as your income. Most lenders want about two years in the same line of work.
How the money comes in
Trade businesses get paid by homeowners, builders and property managers, often by card or check. Service calls bring steady small deposits. Install jobs bring larger ones.
What the lender looks for in your statements
Card processor deposits are counted. If the processor holds back fees, the deposit is already net, which is fine. Supply house refunds and transfers from savings are removed.
Transfers between your own accounts, loan proceeds and other one time money are usually left out. The guide on deposit problems covers how lenders handle large or unusual deposits.
Your costs and the expense factor
If you work mostly alone with a van and tools, your costs may be well under half of revenue, and a CPA letter can help a lot. If you carry a crew and stock equipment, the 50% default may be close to real.
Most lenders start with a 50% expense factor. A letter from your CPA or enrolled agent, or a profit and loss statement prepared by a tax professional, can show lower costs. See how expense factors work.
Proof that the business is real
Your Florida electrical license through the Electrical Contractors' Licensing Board, or your plumbing or air conditioning license through the Construction Industry Licensing Board, both at DBPR. Lenders also accept a CPA or tax preparer letter confirming how long you have been in business.
Common snags, and how to avoid them
- Paying helpers in cash, which makes costs hard to prove.
- A business truck loan in your personal name.
- Moving from employee to owner less than two years ago. Some lenders allow it if you did the same trade before.
What to gather
- 12 or 24 months of business or personal bank statements, every page.
- Proof of your business or license.
- A CPA or enrolled agent letter if your costs are below half of revenue.
- Recent statements for savings or retirement accounts you will use for the down payment or reserves.
Other loans to compare
If you are paid by one builder on a 1099, a 1099 loan is worth comparing. Bank statement loans usually cost more than a conventional loan and ask for a larger down payment, so I check whether a standard loan can count your income first.
More jobs: bank statement loans by job · Back to no tax return loans · bank statement loan requirements
Common questions
Can electricians, plumbers and HVAC techs get a mortgage without tax returns?
Yes. A bank statement loan uses 12 or 24 months of deposits instead of tax returns. Most lenders want about two years in the same line of work.
What expense factor will the lender use?
Most lenders start at 50% of deposits. A CPA or enrolled agent letter, or a third party profit and loss statement, can support a lower number if your real costs are lower.
Do bank statement loans cost more?
Usually, yes. Expect a higher rate and a larger down payment than a conventional loan. The exact cost depends on your credit, down payment and documents.