Self-Employed Mortgage Loans in South Carolina
Home Loans Inc. specializes in mortgage loans for self-employed borrowers in South Carolina - offering bank statement, 1099-only, P&L, and conventional self-employment income programs that recognize your actual cash flow rather than penalizing you for tax-efficient write-offs. If your tax returns do not reflect what you actually earn, we have a program that does.
Why Self-Employed Borrowers Struggle With Traditional Mortgages
The fundamental problem for self-employed borrowers is that the U.S. tax system rewards write-offs that reduce taxable income - and the mortgage system historically has used taxable income as the qualification standard.
A North Charleston contractor who grosses $240,000 per year but writes off $140,000 in legitimate business expenses shows $100,000 in taxable income. Conventional underwriting uses $100,000. A bank statement loan uses $240,000 in deposits minus a lender expense factor - often arriving at $150,000-$180,000 in qualifying income. This difference determines whether the borrower buys a $400,000 home or a $250,000 home - or is denied entirely.
We solve this problem by matching the right loan product to each self-employed borrower's actual financial picture. The first step is always figuring out exactly where you stand on every available program.
Start Here - Use Fannie Mae's Free Income Calculator
Before assuming you need a bank statement or Non-QM program, check whether conventional qualification is closer than you think. Fannie Mae offers a free Income
Calculator at incomecalculator.fanniemae.com that calculates your qualifying income using actual tax return data with all allowable add-backs - depreciation, depletion, business use of home, one-time losses, and other items that increase your qualifying income above what the raw tax return shows.
This tool is used by mortgage professionals to calculate self-employment income in accordance with Fannie Mae guidelines. It is free, requires no personal identifying information, and gives you an immediate result.
Use it before you call us. If the Fannie Mae calculator shows your conventional qualifying income is sufficient for your purchase target - conventional is almost always your best rate and we proceed from there. If it shows a gap between your conventional qualifying income and what you need - that is exactly when bank statement and Non-QM programs become the solution. Bring that number to your conversation with us and we will run every available program side by side.
Self-Employed Mortgage Options in South Carolina
Self-employed borrowers in South Carolina have access to multiple mortgage programs - and the right choice depends on how your income is structured and how it is documented.
Conventional with Schedule C or S-Corp income: if your tax returns show sufficient qualifying income after add-backs, conventional financing is available at the best rates.
Bank statement loan (3, 12, or 24 months): no tax returns required. Qualify on personal or business deposits. Most investors allow 50% of average deposits as qualifying income - higher percentages available with a CPA letter confirming low business overhead. As low as 10% down. Rates approximately 1% higher than comparable conventional.
1099-only loans: qualify using only 1099 income without full tax returns. For independent contractors, gig workers, and commission-based earners with consistent 1099 history.
P&L loans: 12-month profit and loss prepared by a licensed CPA used as qualifying income. Useful for newer businesses without 2-year tax history.
Stated income primary residence: an extremely rare program requiring 20% down and 18 months of the new mortgage payment in verified liquid reserves. No income documentation required. We have access to this program - most lenders do not.
Self-Employed Borrowers in the Lowcountry
The Charleston metro has a large and growing self-employed population - and we serve every segment of it.
Construction subcontractors serving the Summerville, Cane Bay, and North Charleston building boom are frequently 1099 or Schedule C earners whose tax returns show losses while their bank accounts show strong consistent deposits. Boeing and Volvo supply chain vendors and independent contractors with complex income structures. Restaurant and hospitality operators in the growing Park Circle and downtown Charleston scene. Independent Realtors and mortgage professionals. Transportation and logistics owner-operators serving the Port of Charleston. Technology consultants and remote workers with multiple income streams. Physicians and dentists in private practice.
If you have been told you cannot qualify because your tax returns do not show enough income - call us before accepting that as the final answer. There is a good chance we have a program that says yes.
What We Need From Self-Employed Borrowers
Knowing what to gather before you call saves time and gets you pre-approved faster. Documentation varies by program.
For conventional self-employment income: 2 years complete personal and business tax returns (all schedules and all pages), year-to-date P&L, and 2 months bank statements.
For bank statement loans: 12, 24, or in some cases 3 months of complete personal or business bank statements (every page), business license or CPA letter confirming self-employment history, and explanation of any large deposits or gaps.
For 1099-only loans: 1-2 years complete 1099s and 2 months bank statements showing deposits consistent with 1099 income. For P&L loans: 12-month P&L prepared or reviewed by a licensed CPA, 2 months business bank statements. For stated income: 20% down payment verified, 18 months of new mortgage payment in verified liquid assets, credit review.
We tell you exactly what to gather at the start of every self-employed inquiry - no surprises.
Q: I just started my business 14 months ago. Can I get a mortgage?
A: Conventional requires 2 years of self-employment history. Some bank statement programs allow 12 months. P&L programs can work for newer businesses in some cases. Call us with your start date and we will tell you exactly where you stand.
Q: What if my tax return shows a loss?
A: A business loss on your tax return makes conventional qualification very difficult - the loss is typically deducted from any other income you have. A bank statement loan ignores the loss and qualifies on actual deposits, which is often the solution. Check the Fannie Mae Income Calculator first at incomecalculator.fanniemae.com to see your conventional number, then call us.
Q: Can I get a mortgage if I am a Realtor or loan officer?
A: Yes. Commission income has specific documentation requirements. We treat licensed real estate and mortgage professionals the same as other self-employed borrowers - conventional if the tax returns support it, bank statement if they do not.
Q: Do you help self-employed veterans with VA loans?
A: Yes. VA loans can accommodate self-employment income - the VA allows a 2-year self-employment history and uses tax return income with add-backs. For veterans whose tax returns do not show enough income, VA does not have a bank statement alternative - which means some self-employed veterans need bank statement or Non-QM financing even though they have VA eligibility. We explain all options clearly
Q: What is the stated income program and do I qualify?
A: The stated income primary residence program requires no income documentation but requires a minimum 20% down payment and 18 months of the new mortgage payment held in verified liquid savings or assets after closing. It is designed for borrowers with substantial assets and legitimate income who prefer not to document through traditional channels. This program is extremely rare - most lenders do not have access to it. Call us to discuss your specific situation.
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COMPANY
NMLS: 1281448 | COMPANY NMLS: 1728740
Home Loans Inc: Jason Sharon, Mortgage Broker |
2557 Ashley Phosphate Rd,
North Charleston, SC 29418 |
(843) 569-7283 | www.homeloansinc.com
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