For many self-employed borrowers in Albuquerque and throughout New Mexico, qualifying for a mortgage can feel unnecessarily difficult — even when business is strong.
According to Ben Lucero of Indigo Mortgage, this is one of the most common frustrations he hears from local business owners.
“A lot of self-employed borrowers are doing very well financially,” Ben says. “But because of how income is reported on tax returns, they’re often told they don’t qualify.”
That’s where bank statement loans come in — a mortgage option designed to look at real cash flow instead of traditional income documentation.
Why Self-Employed Borrowers in New Mexico Often Have Trouble Qualifying
Many self-employed individuals in Albuquerque, Rio Rancho, and surrounding communities legitimately reduce their taxable income by writing off business expenses.
“That’s smart tax planning,” Ben explains. “But it doesn’t always work in your favor when you’re applying for a mortgage.”
This challenge affects:
- Small business owners
- Independent contractors
- Realtors and commission-based professionals
- Gig workers
- Consultants and freelancers
“New Mexico has a large self-employed workforce,” Ben says. “And those borrowers deserve loan options that reflect how they actually earn money.”
What Is a Bank Statement Loan?
A bank statement loan allows self-employed borrowers to qualify for a mortgage using bank deposits instead of tax returns.
“With a bank statement loan, we’re not looking at W-2s or tax returns,” Ben says. “We’re looking at what’s actually coming into your accounts.”
Lenders typically:
- Review 12 or 24 months of bank statements
- Add up monthly deposits
- Average those deposits to determine qualifying income
“This gives a much clearer picture of income for self-employed borrowers,” Ben explains.
How Long Do You Need to Be Self-Employed to Qualify?
One of the most common questions Ben hears from self-employed borrowers in Albuquerque and across New Mexico is how long they need to be in business before qualifying.
“That’s a really important question,” Ben says. “And the answer is usually more flexible than people expect.”
In most cases, bank statement loans require at least two years of self-employment in the same line of work. However, Ben explains that lenders also look at the bigger picture.
“Two years is the general guideline, but it’s not the only factor,” he says.
Lenders will also review:
- Consistency of bank deposits
- Overall income stability
- Industry experience
- Credit profile
- Cash reserves
“For example, if someone worked in the same industry as a W-2 employee and then became self-employed, that history can help,” Ben explains.
“The key thing lenders want to see is stability,” Ben adds. “They want to know the income is reliable, not just a short-term spike.”
How Bank Statement Loans Work in Practice
While bank statement loans are flexible, they are different from conventional loans.
Ben explains that borrowers should expect:
- Slightly higher interest rates than conventional loans
- Higher down payment requirements
- More detailed income review
“These loans aren’t meant to replace conventional financing,” Ben says. “They’re meant to create an option when conventional loans don’t work.”
Indigo Mortgage has helped many self-employed borrowers qualify using bank statement loans when tax returns alone weren’t enough.
Who Bank Statement Loans Are Best For
Bank statement loans are often a great fit for self-employed borrowers in Albuquerque and Central New Mexico who:
- Have strong monthly deposits
- Don’t qualify using tax returns
- Are purchasing or refinancing a primary residence
- Have solid credit and savings
“We’ve used this program successfully for business owners all over New Mexico,” Ben says.
Why Local Experience Matters
Bank statement loans require careful review, which is why Ben strongly recommends working with a local lender.
“These loans aren’t something you want handled by a call center,” Ben says. “You want someone who understands your business and the local market.”
At Indigo Mortgage, Ben works one-on-one with borrowers across:
- Albuquerque
- Rio Rancho
- Santa Fe
- Los Lunas
- Bernalillo
- And surrounding areas
“We take the time to review everything up front,” Ben says. “That avoids surprises later in the process.”
Indigo Mortgage’s Approach to Self-Employed Borrowers
Indigo Mortgage focuses on education and realistic expectations.
“Our job is to help borrowers understand their options,” Ben says. “If a bank statement loan makes sense, we’ll explain it clearly. If it doesn’t, we’ll look at other solutions.”
Clients appreciate:
- Honest guidance
- Clear communication
- Local expertise
- Experience with non-traditional loan programs
Talk to Ben Lucero About Bank Statement Loans in New Mexico
If you’re self-employed and live in Albuquerque or anywhere in New Mexico, Ben encourages you to reach out.
“Even if you’ve been told no before, it’s worth having a conversation,” Ben says.
Contact Indigo Mortgage to speak with Ben Lucero about bank statement loans or any other mortgage questions. A review of your bank statements could be the key to qualifying for a home loan that actually fits how you earn income.