Getting Started with Self-Employed Mortgages
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Buying a home when you are self-employed can feel harder than it should — your tax returns rarely tell the full story of what you actually earn. The good news is that there are loan programs built for borrowers like you. This collection covers everything from understanding why traditional underwriting trips up business owners to choosing the right path for your situation. Whether you file as a sole proprietor, an LLC, or an S-corp, these guides will help you take the first step toward getting approved.
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Frequently Asked Questions
Can I get a mortgage if I am self-employed?
Yes. Plenty of self-employed, 1099, and business-owner borrowers qualify for home loans every year. Traditional loans rely on your tax returns, which often understate your real income because of write-offs. Non-QM programs — like bank statement, 1099, and asset-based loans — look at your actual cash flow or assets instead, which is why they exist specifically for borrowers like you.
How long do I need to be self-employed to qualify?
Most lenders want to see two years of self-employment history, which lets them confirm your income is stable. Some programs will consider one year if you were in the same line of work before going out on your own. The exact requirement depends on the loan program and how you document your income.
Do I have to use my tax returns to qualify?
Not necessarily. That is the whole point of non-QM lending. Bank statement loans qualify you on deposits, asset depletion loans use your savings and investments, and 1099 loans use your 1099 forms. These programs are designed for self-employed borrowers whose tax returns do not reflect their true earning power.
What documents will a self-employed borrower need?
It depends on the program. A bank statement loan typically needs 12 to 24 months of personal or business bank statements. An asset depletion loan needs statements for your savings and investment accounts. You will also generally need ID, proof of self-employment such as a business license, and details on the property. Gathering these early makes the process much smoother.
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Get Smarter About Self-Employed Mortgages
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