You build the houses in Falcon and Banning Lewis Ranch. You fix the furnaces in Briargate. And a bank just told you that you cannot afford a home because your tax return shows $58,000. That return is after a new truck, a trailer, tools, fuel, and depreciation. We read your deposits instead. Bank statements, 1099s, or your CPA’s P&L. No tax returns. Colorado Springs based, 25+ years.
No SSN required. No credit pull. Takes about 2 minutes.
Why Trades Get Told No
A contractor’s tax return is designed to be small. Section 179 lets you write off a work truck in one year. Equipment depreciates. Fuel, insurance, materials, and sub labor all come off. That is good tax work. But a regular loan reads the number at the bottom as your pay. A business that collects $30,000 a month can look like a $4,800-a-month job on paper.
None of those write-offs touch your bank account the same way. The deposits are still there. A bank statement loan reads the deposits.
Three Paths for a Trades Business
Bank statement loan
12 or 24 months of business or personal statements. 660 score. Business statements get a 50% factor, or the lower number your CPA states in writing. Best for GCs and shops with steady deposits. Colorado Springs bank statement loans.
1099 loan
For subs paid by the GC on a 1099. Framers, electricians, drywall, finish crews. 100% of the 1099 counts. 620 score. Colorado Springs 1099 loans.
P&L loan
If your CPA already builds a P&L for bonding or the bank, that statement is your income. 660 with two months of statements. Colorado Springs P&L loans.
Trades-Specific Rules That Matter
- Seasonal deposits. Landscaping, concrete, roofing, and snow removal swing by season. The 24-month option smooths it. We run 12 and 24 and use the higher average.
- Materials deposits. A customer’s $40,000 materials deposit is revenue in the deposit math. It also inflates the average. Big one-time deposits need a paper trail or they come out.
- Job-to-job 1099s. A sub with 1099s from six GCs is normal. Steady is what matters, not one source.
- Equipment loans. Truck and equipment payments count as debt. If the business pays them from a business account for 12 months, they can often be left out of your personal ratio.
- Mixed accounts. Running the business through your personal checking pushes the file to business treatment with an expense factor. Separate accounts before you apply if you can.
- Licensing. The lender verifies the business exists within 10 business days of closing. A Pikes Peak Regional Building Department license or a Secretary of State filing does it.
What You Need to Qualify
Source: PRMG Non-QM Income Qualifying product profile dated June 4, 2026. Terms change. Confirm on your file.
Building Your Own Home?
A lot of contractors want to build their own place in Black Forest, Peyton, or on acreage east of Falcon. That is a construction loan, and it qualifies on the same self-employed income paths. If you are a veteran, VA can finance a new build with $0 down and a VA-registered builder. Start with the Colorado Springs self-employed hub and tell us it is a build.
Why Colorado Springs Has So Many Self-Employed Buyers
This is a military town. Military towns run on small business. Contractors who serve Fort Carson, Peterson, Schriever, and the Academy. Spouses who built a business that moves with each PCS. Veterans who got out and started a company. Real estate agents. Home builders. HVAC and plumbing shops. Cleaning companies, gyms, salons, and food trucks. And a growing number of remote 1099 workers who picked the Pikes Peak region on purpose.
The problem is the same for all of them. A good accountant lowers your taxable income. A bank reads that lower number as your pay. So the owner who keeps the most money is often the one who gets told no. We fix the document, not the business.
Myths
Myth: I have to stop writing off my truck for two years. No. Keep the deduction. Change the loan.
Myth: Subs paid by 1099 cannot get a mortgage. A 1099 loan counts 100% of it. 620 score.
Myth: I need a CPA. No. The fixed 50% factor on business statements needs no CPA. A CPA letter only helps if your real expenses are lower.
Every Colorado Springs Self-Employed Page We Have
Sorted by how you get paid and what you are trying to do.
Colorado Springs self-employed mortgage hub
Every self-employed and business-owner loan path we run in Colorado Springs, sorted by how you get paid.
Bank statement loans in Colorado Springs
Qualify on 12 or 24 months of deposits. No tax returns.
P&L loans in Colorado Springs
Your CPA’s profit and loss statement is your income.
1099 loans in Colorado Springs
100% of your 1099 income counts. No expense haircut.
Asset depletion loans in Colorado Springs
Qualify on savings and investments instead of a paycheck.
Alt-AUS jumbo in Colorado Springs
Above $832,750 with clean tax returns and a DTI up to 49.99%.
Self-employed refinance in Colorado Springs
Rate-and-term to 89.99%. Cash-out to $1,500,000. No tax returns.
DSCR loans in Colorado Springs
Rentals qualify on rent, not your income.
Jumbo loans in Colorado Springs
Broadmoor, Flying Horse, Black Forest. Eight jumbo paths.
Realtor and commission-income mortgages
1099 agents and commission earners. Variable income, handled.
Rental property investor loans
House-hack, BRRRR, and out-of-state buyers. DSCR, bank statement, and HELOC paths.
Colorado Springs Contractor Mortgage FAQ
Can a contractor get a mortgage in Colorado Springs without tax returns?
Yes. A bank statement loan uses 12 or 24 months of deposits. A 1099 loan uses your 1099s. A P&L loan uses your CPA’s statement. Tax returns are not used on any of them.
Do my truck and equipment write-offs hurt me?
Not on a bank statement loan. Depreciation and Section 179 write-offs lower your tax return, not your deposits. The deposits are what we read.
I am a sub paid by 1099. What loan do I use?
A 1099 loan. 100% of the gross 1099 counts, validated with an IRS transcript. 620 minimum score. Multiple GCs paying you is fine.
My income is seasonal. Does that hurt me?
The 24-month option smooths seasonal deposits. We calculate 12 and 24 months and use the higher average.
Do customer materials deposits count as income?
They land in the deposit total, but large one-time deposits need a paper trail. Without one they come out of the average. Tell us about them up front.
I went out on my own 18 months ago. Can I qualify?
Usually, if you have two years of W-2 work in the same trade before that. Under one year with no related history does not qualify.
Can equipment payments be left out of my debt ratio?
Often, if the business has paid them from a business account for 12 months. We document it.
Can I use these loans to build my own house?
Yes, on a construction loan that qualifies on the same self-employed income. Veterans can build with $0 down through VA with a VA-registered builder.
The math behind all of this is in how banks calculate self-employed income. If you are newer than two years, read mortgage for the newly self-employed.
Written by
J.D. Peck
Area Manager and Mortgage Loan Originator at Paramount Residential Mortgage Group, Inc. NMLS #314883. 25+ years of mortgage experience, 3,100+ closed loans, Scotsman Guide Top Originator 2026.
Last updated: September 9, 2026. Loan program parameters subject to change — confirm current eligibility on your specific scenario before relying on any figure shown.
Send 12 Months of Statements. We Send Back a Number.
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