Yes. Software developers and IT contractors 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
Developers and IT contractors are paid by clients, staffing firms or freelance platforms, often monthly or by project.
What the lender looks for in your statements
Client and platform payments count. Payments from foreign clients are fine when they are clearly business income. Crypto conversions and transfers from investment accounts are usually 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
Costs are usually low: equipment, software and subscriptions. A CPA letter showing a low expense ratio often raises qualifying income a lot.
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 company filing, client contracts or platform profile, and invoices. Lenders also accept a CPA or tax preparer letter confirming how long you have been in business.
Common snags, and how to avoid them
- Platforms that hold funds and release them in lumps.
- Being paid in crypto, which most lenders will not count until it is converted and documented.
- Staffing firm W-2 income mixed with 1099 income.
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 one firm pays you on a 1099, compare a 1099 loan. 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 software developers and IT contractors 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.