Bank Statement Loans & 1099 Loans; The Complete Guide to Self-Employed Mortgages in Florida for 2025
With Expert Insight from Louis Doherty, NMLS #60093 - Florida Mortgage Loan Officer
*Terms are not exact, will vary and examples in this Complete Guide are typical examples and for educational purposes. Each buyer profile will vary based on the specifics of their file and underwriting is subject to change with market rates, conditions and loan programs.
Introduction: Why This Guide Matters for Florida's Self-Employed Buyers
If you're self-employed and trying to buy a home in Florida in 2025, you've probably already run into a few roadblocks. Maybe you've been turned down for a traditional loan, or maybe the process just feels more confusing than it should. The truth? Traditional mortgage requirements don't always work well for entrepreneurs, freelancers, contractors, or small business owners.
That's where self-employed mortgage solutions like bank statement loans and 1099 income-only programs come into play. These alternative programs are designed with flexibility in mind and have opened doors for thousands of independent earners across Florida, especially in booming markets like Miami, Palm Beach, and Broward.
This comprehensive guide will break down everything you need to know, including qualifying requirements, loan types, documentation, and why Louis Doherty (NMLS #60093) is one of Florida's top resources for self-employed mortgage solutions. With over 23 years of experience, $500M+ in loans funded, and a 5-star reputation, Louis has helped countless self-employed buyers unlock the door to homeownership even when others said "no."
Understanding Self-Employed Mortgages in Florida
So, what exactly is a self-employed mortgage? It's not a specific loan product, but rather a class of mortgage solutions tailored for borrowers who don't earn a traditional W-2 income.
Self-employed borrowers include
- Small business owners
- Freelancers
- Independent contractors (e.g., Uber drivers, consultants)
- Real estate agents
- Gig workers and side hustlers
- Commission-based professionals
Traditional lenders often struggle to verify your income because it's not always steady or easy to document. Many self-employed individuals also take business deductions that lower their taxable income on paper something that can work against you when applying for a standard mortgage. That's why alternative documentation programs exist. They allow you to prove your true earning power using methods like bank statements, 1099s, and even CPA-prepared Profit & Loss statements.
In a state like Florida, where the real estate market is hot and competition is fierce, having the right loan product and the right mortgage broker can make or break your homeownership journey.
Challenges Self-Employed Buyers Face When Getting a Mortgage
Let's be honest: getting approved for a mortgage while self-employed can feel like climbing a mountain in flip-flops. Here are the most common issues:
1. Inconsistent Income
You might make $150K one year and $90K the next. Lenders want predictability, which can be tough when your income fluctuates.
2. Aggressive Tax Write-Offs
Taking business deductions reduces your taxable income, which is great for your wallet but not for your mortgage application. Many self-employed folks find that their "on-paper" income looks too low to qualify.
3. Complex Documentation
You're juggling business checking accounts, 1099s, profit & loss statements, and maybe a few side hustles. It's not a simple W-2 + pay stub situation.
4. High DTI (Debt-to-Income) Ratios
When lenders use your net income, you may appear to have a higher DTI ratio even if you're financially stable.
5. Lender Hesitation
Not all mortgage lenders are willing to take on the "risk" of self-employed borrowers. That's why working with an expert like Louis Doherty, who specializes in self-employed mortgages in Florida, is so crucial.
What is a Self-Employed Mortgage?
A self-employed mortgage refers to home loans designed to accommodate borrowers who don't receive a steady paycheck or W-2 income. These loans can use alternative documentation methods to verify income and determine eligibility.
Key features of self-employed mortgages
- Income is verified using bank statements, 1099s, or P&L statements, not tax returns.
- Borrowers can qualify with as little as 10% down (depending on the program).
- Loan limits can reach up to $5 million or more for jumbo properties.
- Flexible credit score requirements, often starting at 620+.
Unlike traditional conforming loans, these programs are built to understand the complexity of self-employment income. Whether you're a sole proprietor, LLC owner, or 1099 contractor, there's likely a mortgage solution that fits your situation.
Louis Doherty, based in Boca Raton and serving all of South Florida, offers exclusive access to 150+ lenders including those who specialize in bank statement and 1099 programs.
Popular Self-Employed Mortgage Programs in Florida
Florida is one of the most diverse real estate markets in the country and thankfully, there's no shortage of flexible financing options for entrepreneurs and self-employed buyers.
Here are the most common programs available through Louis Doherty at Edge Home Finance:
Bank Statement Loans
Use 12 to 24 months of business or personal bank statements to verify income. Perfect for business owners who write off heavily on taxes.
1099 Income Only Programs
Use your 1099s from the last one or two years to qualify no tax returns required.
P&L Only Loans
Use a CPA-prepared profit & loss statement instead of bank statements or tax docs.
Asset Depletion Loans
Qualify based on your total liquid assets (like retirement, stocks, or savings), calculated into a monthly income stream.
DSCR Loans for Investors
Debt-Service Coverage Ratio loans are ideal for self-employed investors looking to buy rental properties. Approval is based on rental income, not personal income.
Bank Statement Loans in Florida: A Lifeline for Entrepreneurs
https://dohertyhomeloans.com/fl/sarasota/self-employed-mortgage-florida/ are one of the most popular self-employed mortgage options in Florida, especially for buyers in Miami, Broward, and Palm Beach.
How They Work:
Instead of using your tax returns, the lender looks at 12 to 24 months of your personal or business bank statements to calculate average monthly deposits (a proxy for income).
Typical Requirements
- Credit score: 660+
- Down payment: As low as 10% (90% LTV)
- Bank statements: Must be consistent, showing regular income deposits
- Business license or CPA letter confirming self-employment
Best For
- Business owners
- Freelancers with consistent client payments
- Entrepreneurs with seasonal or fluctuating income
Louis Doherty specializes in these loans, offering up to 90% LTV with no PMI (Private Mortgage Insurance) which is a game-changer in high-cost Florida markets.
1099 Loan Florida: Everything You Need to Know
If you're a freelancer or contractor who gets paid via 1099 forms, this is the loan for you. A 1099 loan allows you to qualify using your 1099s instead of tax returns.
Program Highlights
- Use 1 or 2 years of 1099s
- No need to show tax returns or full financials
- Loans up to $3M or more
- Rates slightly above conventional, but very competitive
Who It's For
- Independent contractors (e.g., real estate agents, delivery drivers, consultants)
- Gig economy workers
- Self-employed sales professionals
Why It Works:
Lenders recognize that many 1099 workers make strong incomes but deduct heavily for taxes. The 1099-only program gives them credit for gross income where they'd otherwise be penalized for write-offs.
Louis Doherty has helped 1099 workers in Florida qualify for home loans when big banks said "no."
How to Qualify for a Self-Employed Mortgage in Florida
Getting approved for a self-employed mortgage in Florida doesn't have to be overwhelming if you know what lenders are looking for and how to prepare. The process is slightly different from a traditional mortgage, but with the right documents and a strategic plan, you can absolutely qualify.
Here's what you need to do to boost your chances of approval:
1. Show Consistent Income
Even if your income fluctuates, lenders want to see consistency over 12-24 months. For bank statement or 1099 programs, steady monthly deposits or year-over-year earnings help build a strong case.
2. Maintain a Good Credit Score
While each loan program varies, a minimum credit score of 620-660 is generally required. For better rates, aim for 700+.
3. Have a Reasonable Down Payment
You can get approved with as little as 10% down using alternative documentation loans. However, putting more down (15-20%) can unlock better terms and lower interest rates.
4. Keep Personal and Business Finances Separate
This is critical. If you're using business bank statements, they should show clear and legitimate income patterns. Mixing in personal expenses makes it hard for lenders to assess your income.
5. Partner with the Right Mortgage Expert
Many lenders simply don't understand self-employed income, and their underwriting guidelines are rigid. That's why working with a seasoned pro like Louis Doherty, who has 23+ years of experience helping Florida's self-employed community, can make all the difference.
Louis's access to 150+ lenders and specialized self-employed programs means you won't be stuck with cookie-cutter options that don't reflect your financial reality.
Self-Employed Mortgage Miami: Unique Considerations
Buying a home in Miami as a self-employed borrower? You're not alone. Miami is a hotbed for entrepreneurs, real estate investors, digital nomads, and small business owners. But it's also one of the most competitive and expensive housing markets in Florida.
Here's what you need to keep in mind:
1. Higher Home Prices Mean Higher Loan Amounts
In markets like Miami Beach, Coral Gables, and Brickell, home prices often exceed conventional loan limits. This means you may need a jumbo loan, which has stricter guidelines unless you use an alternative documentation program.
2. Bank Statement and 1099 Loans Are Essential Tools
If your income is strong but not "conventional" on paper, these are your golden tickets. Louis Doherty offers
- Bank statement loans up to 90% LTV
- 1099 income-only loans
- Jumbo loans with alternative docs
3. Local Expertise Matters
Louis is based in South Florida and serves Miami-Dade, Broward, and Palm Beach Counties. His in-depth knowledge of local market trends and property types (like non-warrantable condos and waterfront estates) gives him a serious edge when crafting custom loan solutions.
Whether you're buying a luxury condo in Edgewater or investing in a duplex in Little Havana, Louis can match you with the right program.
Documentation Needed for Self-Employed Mortgages
Documentation is the backbone of any mortgage approval but for self-employed borrowers, it goes beyond simple pay stubs. The goal is to prove your ability to repay the loan using alternative methods.
Here's a list of documents you may need depending on the program:
For Bank Statement Loans
- 12-24 months of personal or business bank statements
- Business license or CPA letter verifying self-employment
- Photo ID and social security card
- Profit and Loss statement (optional but helpful)
For 1099-Only Loans
- 1-2 years of 1099 forms
- Year-to-date P&L statement
- Photo ID, credit authorization form
- Possibly a CPA verification of income stability
For P&L Only Loans
- CPA-prepared profit & loss statement for the past 12 months
- Business license
- May require bank statements to support P&L
Other Common Documents
- Credit report
- Asset statements (savings, retirement, investments)
- Business entity documents (LLC registration, etc.)
- Rental income verification, if applicable (for investment properties)
Louis Doherty works hands-on with clients to gather the right documentation and present it strategically to underwriters. That's what sets him apart.
Credit Score and Down Payment Requirements
Worried about your credit score or cash on hand? Here's the good news: you don't need perfect credit or 20% down to qualify for a self-employed mortgage in Florida.
Let's break it down by loan type
|
Loan Program |
Min Credit Score |
Min Down Payment |
|---|---|---|
|
Bank Statement Loan |
660+ |
10-20% |
|
1099-Only Loan |
620+ |
10-15% |
|
P&L Only Program |
660+ |
15-20% |
|
Jumbo Loan (Alt Doc) |
700+ |
20% or more |
|
DSCR Investment Loan |
620+ |
15-25% |
Tips to Strengthen Your File
- Pay down credit card balances to lower your utilization ratio
- Dispute inaccurate credit items
- Avoid applying for new credit cards or loans before mortgage approval
- Have 2+ months of reserves (savings or investments) to cover mortgage payments
Interest Rates and Terms for Self-Employed Mortgages
Interest rates for self-employed mortgage programs in Florida are generally 0.5% to 1.5% higher than traditional loans but don't let that scare you off. These programs offer flexibility you can't get elsewhere.
Factors That Influence Your Rate
- Credit score
- Loan-to-value ratio (LTV)
- Loan size (conforming vs. jumbo)
- Documentation type (bank statements, 1099s, P&L)
- Type of property (primary, second home, investment)
2025 Rate Snapshot (Estimated)
- Bank Statement Loan: 7.25% - 8.75%
- 1099-Only Loan: 7.5% - 9.25%
- P&L Loan: 7.75% - 9.5%
- DSCR Loan: 8% - 9.5%
Louis Doherty compares rates across 150+ lenders to ensure you get the best rate possible no matter your income structure.
Step-by-Step Process to Get Approved
Ready to move forward? Here's how the mortgage process works when you partner with Louis Doherty:
Step 1: Pre-Qualify
Call or apply online at Doherty Home Loans or dial (954) 394-1959 to get pre-qualified. There's no obligation, no credit hit, and you'll get your rate options instantly.
Step 2: Gather Your Docs
Work with Louis to determine the best documentation type for your situation (bank statements, 1099s, etc.).
Step 3: Choose Your Loan Program
Louis matches you with the best loan type based on your financials, credit, and home goals.
Step 4: Submit Application
Your application goes through underwriting where it's reviewed in detail.
Step 5: Get Approved and Close
Once you're approved, sign the final paperwork and close on your dream home often in as little as 30 days!
Tips to Boost Your Approval Odds
Let's be real being self-employed shouldn't mean being locked out of homeownership. But to beat the odds and secure the best possible loan, you need to come prepared. Whether you're applying in Miami, Fort Lauderdale, or Palm Beach, these tips will dramatically improve your chances:
1. Reduce Tax Write-Offs (Strategically)
For two years leading up to your mortgage application, consider reducing aggressive deductions. Yes, you'll pay more in taxes but you'll show higher income, which could qualify you for a larger loan at better terms.
2. Separate Personal and Business Finances
It's time to clean house. Lenders want to see clean, consistent deposits. If your personal and business finances are entangled, it makes it harder for underwriters to assess your true income. Keep separate accounts and avoid commingling funds.
3. Use a CPA-Prepared Profit & Loss Statement
Even if not required, a professional P&L from a CPA adds credibility and clarity to your file. Many lenders (especially the 150+ in Louis Doherty's network) view CPA-prepared documents as a green flag.
4. Build or Improve Your Credit Score
Even a 20-point boost can unlock better loan options. Start by paying down balances, correcting errors, and avoiding new inquiries. Louis and his team can guide you through credit optimization strategies during pre-approval.
5. Work with a Mortgage Broker Specializing in Self-Employed Loans
This is non-negotiable. Most banks are geared toward W-2 borrowers and simply won't understand your income profile. Louis Doherty has decades of experience and specializes in complex self-employed scenarios including jumbo loans, 1099 programs, and investment property financing.
Best Lenders and Mortgage Brokers in Florida for Self-Employed Borrowers
If you're a self-employed borrower in Florida, the broker you choose will make or break your mortgage experience. Many lenders still rely on outdated underwriting rules that don't fit the modern self-employed lifestyle.
Here's why Louis Doherty stands out as the go-to mortgage expert in Florida
|
Feature |
Louis Doherty, NMLS #60093 |
|---|---|
|
Experience |
23+ years in Florida real estate & mortgage lending |
|
Loans Funded |
$500M+ in mortgage loans |
|
Specialization |
Self-employed, 1099, bank statement, jumbo, investor loans |
|
Location |
Boca Raton, FL (serving Miami-Dade, Broward, Palm Beach Counties) |
|
Loan Options |
Access to 150+ lenders across the U.S. |
|
Contact |
(954) 394-1959 or louis.doherty@edgehomefinance.com |
Louis understands the unique financial situations of entrepreneurs, contractors, and freelancers, offering customized solutions that go way beyond what big banks provide.
Whether you're buying a primary residence, second home, or investment property, he'll match you with the perfect lender and loan program even if your income looks "complicated" on paper.
Common Mistakes to Avoid
Self-employed borrowers in Florida often make a few missteps that can seriously delay or even ruin their mortgage approval. Learn from these common mistakes so you don't fall into the same traps:
1. Underreporting Income on Taxes
It might save you money short-term, but if you report too little income, it can hurt your loan eligibility. Instead, aim for a balanced tax strategy two years before applying.
2. Waiting Until You Find a Home to Get Pre-Approved
In a competitive market like Miami or Fort Lauderdale, you need to be ready to strike. Get pre-approved early to strengthen your offer and lock in your rate.
3. Mixing Business and Personal Expenses
Lenders need to understand your income flow clearly. Personal transactions like Netflix, groceries, or Venmo payments should not appear on business statements.
4. Going with the Wrong Lender
Most big-name lenders aren't built to serve self-employed borrowers. They'll force you into traditional underwriting, which may not reflect your true income. That's why Louis Doherty's flexible lender network is a huge advantage.
5. Not Having Enough Cash Reserves
Many programs (especially jumbo and investment property loans) require 6-12 months of reserves. These can come from savings, investments, or retirement accounts but don't forget to budget for them.
Conclusion: Your Path to Homeownership Starts Now
Being self-employed doesn't mean you're locked out of Florida's booming real estate market. With the right loan program, the right documentation, and a mortgage expert like Louis Doherty in your corner, you can confidently secure the home of your dreams in 2025.
Whether you're in Miami, Boca Raton, Fort Lauderdale, or anywhere across the Sunshine State, there are flexible, powerful mortgage solutions waiting for you and they don't require traditional tax returns or pay stubs.
Louis Doherty's 23+ years of experience, $500M+ in funded loans, and a reputation built on trust and results make him the clear choice for self-employed borrowers ready to buy, refinance, or invest.
So take the next step.
Call (954) 394-1959
Email: louis.doherty@edgehomefinance.com
Visit: 20283 State Road 7, Suite 332, Boca Raton, FL 33498
Apply Online: Start Your Application with Louis Doherty