New Jersey Self-Employed Mortgage: Bank Statement, 1099, and P&L Loans

Most of the internet still says the New Jersey buyer pays a 1% mansion tax over $1 million, but for deeds on or after July 10, 2025, the state puts that fee on the seller.

A New Jersey self-employed mortgage is a home loan that qualifies business owners on bank statements, 1099s, or a CPA P&L instead of tax returns. It fits the Hoboken or Jersey City consultant who bills Manhattan clients, the Montclair creative, the Princeton tech contractor, and the Red Bank or shore-town business owner. New Jersey’s graduated income tax pushes owners to deduct hard, and prices in the northern counties run high. The JD.Mortgage Team at PRMG lends on New Jersey homes, not New York ones, from 620 FICO (Non-Prime) and 660 FICO (Expanded Prime). 25+ years, 3,100+ closed loans, Scotsman Guide Top Originator 2026. Lending in 49 states. New York excluded.

Last updated: September 24, 2026

New Jersey Self-Employed Mortgage: The Short Answer

Yes. A New Jersey business owner can buy or refinance without tax returns. We qualify you on 12 or 24 months of bank statements, your gross 1099 income, or a CPA-prepared profit and loss statement. You need at least 2 years of self-employment and a credit score of 620 or higher.

Who Uses Self-Employed Loans in New Jersey

Hudson County and North Jersey consultants who bill New York clients

Finance, legal, media, and tech consultants in Jersey City, Hoboken, and Montclair often work on a 1099 for Manhattan firms. Gross pay is high. The return, after two-state tax planning, is not. The 1099 path fits. We use 100% of gross 1099 income plus YTD, averaged, with an IRS transcript. Year-to-date deposits in your bank account show the income is still coming in this year.

Central Jersey tech and pharma contractors

Around Princeton and the Route 1 corridor, many scientists and engineers work corp-to-corp through their own S-corp. They pay themselves a small salary and take the rest as distributions. Business bank statements with the 50% expense factor capture it. You need at least 25% ownership.

Jersey Shore seasonal business owners

From Red Bank down to Cape May, restaurants, surf shops, and rental managers earn most of the year in summer. PRMG’s guidelines call for 24 months of statements when income is seasonal, so two summers and two winters average out. A slow January does not decide the file.

Contractors and trades across Bergen, Essex, and Morris counties

Older housing stock keeps remodelers, roofers, and landscapers busy, and their trucks and equipment create big write-offs. A 12-month CPA P&L works if a CPA, EA, or CTEC preparer signs it and deposits land within 35% of the P&L revenue. Business bank statements work too.

Owners who want equity instead of a move

New Jersey owners who bought years ago often sit on real equity. If you want cash for the business but want to keep your first mortgage, see our New Jersey HELOC page. If a full refinance fits better, the same 1099 and bank statement rules carry over to a self-employed refinance. For shore rentals you buy as investments, a DSCR loan qualifies on the rent.

What We Count Instead of Your New Jersey Tax Return

Every path below answers one question: how much money does your business really bring in each month? Pick the wrong path and you leave income on the table. We run each one that fits and use the strongest.

More on each: bank statement loans, 1099 loans, P&L loans, asset utilization, and DSCR loans for rentals.

New Jersey’s Graduated Income Tax and What It Does to a Consultant’s Return

New Jersey taxes income on a graduated scale. The Division of Taxation publishes separate tax tables and rate schedules by filing status, and the rate climbs as income climbs. For a self-employed person, that means the last dollars earned are taxed the hardest, so each deduction saves the most right where your income is highest.

Many New Jersey consultants also work for New York clients. They may file in both states, and they often run their billing through an LLC or S-corp. Add federal self-employment tax, and the CPA’s job is to push net income down: home office, a car, a laptop, health insurance, and retirement contributions. The return that reaches a lender is built for the IRS and Trenton, not for a mortgage.

What the lender sees	Tax return lender	Our method
1099 consultant	Schedule C net after deductions	100% of gross 1099 + YTD, IRS transcript
S-corp owner	Small W-2 salary	Business deposits x 50% expense factor
CPA-prepared books	Two years of returns	12-month CPA P&L, deposits within 35%

Here is the part most lenders miss. We do not need to sort out which state taxed which dollar. 1099 qualifying starts from gross 1099 income. Bank statement loans start from deposits. Your NJ and NY tax bills, your deductions, and your retirement contributions stay out of the math. The 1099s must match an IRS wage and income transcript, and your year-to-date deposits must show the income is still coming in.

One note for clarity: we lend in New Jersey. We do not lend on New York property. Where you work does not matter. Where the house sits does.

A Hoboken Example: The Consultant Who Bills Manhattan

This Hoboken strategy consultant is paid on 1099s by two Manhattan firms. After health insurance, a home office, travel, and a large retirement contribution, the return shows $138,000. We use 100% of the $228,000 gross, confirmed by an IRS transcript. The DTI drops to 47.89%, inside the 50% Expanded Prime cap at a 660 or higher score. The home is in Hudson County, where the 2026 conforming limit is $1,209,750.

Checklist: New Jersey Self-Employed Loan Basics

Figures: PRMG Non-QM Income Qualifying Product Profile, 09/17/2026.

Buying in New Jersey: 12 High-Cost Counties and the Mansion Tax Shift

FHFA’s 2026 one-unit conforming limit is $1,209,750 in 12 New Jersey counties: Bergen, Essex, Hudson, Hunterdon, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, and Union. The other nine counties are at the $832,750 baseline. Our self-employed loans run from $100,000 to $3,500,000 either way. The $3.5 million top needs 70% LTV and a 700 score.

Now the correction. New Jersey’s Division of Taxation says the seller pays the Realty Transfer Fee, and on sales over $1 million the seller also pays a graduated percent fee: 1% over $1 million to $2 million, 2% to $2.5 million, 2.5% to $3 million, 3% to $3.5 million, and 3.5% above that. The state’s policy memo says this applies to transfers on or after July 10, 2025. The old 1% fee paid by the buyer, the one people call the mansion tax, only applies to deeds submitted before that date. Contracts can shift costs privately, so read yours.

Sale price	Graduated percent fee (seller)
Over $1M to $2M	1%
Over $2M to $2.5M	2%
Over $2.5M to $3M	2.5%
Over $3M to $3.5M	3%
Over $3.5M	3.5%

Two more New Jersey points. Condos and townhomes are common along the Hudson. Warrantable condos go to 89.99% LTV at 740, and non-warrantable condos cap at 80%. For investors, PRMG’s guidelines do not allow prepayment penalties on New Jersey investment loans.

New Jersey Self-Employed Mortgage Myths, Corrected

New Jersey Self-Employed Mortgage Frequently Asked Questions

Related Pages

More for New Jersey: New Jersey VA loans · New Jersey HELOC

Source: JD.Mortgage Team at PRMG, New Jersey Self-Employed Mortgage: Bank Statement, 1099, and P&L Loans, updated September 2026, https://jd.mortgage/new-jersey-self-employed-mortgage/