Mortgage for Self-Employed

All lenders will look for proof of the following things:

• Income stability
• Income replacement
• Information about self-employment (location and type of business)
• Financial strengths and weaknesses of your business
• Ability to generate income in the future
• Debts owed/Debt-to-Income Ratio

To start the home buying process, you will need to show self-employment history for at least two consecutive years. To show self-employment verification, you have the following options:

• Have current clients provide statements/proof
• Provide evidence of Insurance for your business
• Share a business license
• Provide records supported by a certified personal accountant (CPA)
• Provide invoice records

You will need proof of steady, consistent income. The more income history you can provide, the more likely you are to be approved for a mortgage. The level of income should easily reflect the same or higher value you need to afford the loan. Your lender may ask to see the following documents:

• Tax returns (including any W-2s you may have received through contract)
• Profit and loss forms, form 1120S or K-1, depending on your business
• Bank statements
• Invoice records

In short, yes — getting a mortgage as a self-employed borrower can be challenging. Lenders may require additional proof of reliable income to verify you can afford monthly payments. Business deductions, while helpful for taxes, can sometimes reduce your annual income, making it harder to qualify. But don’t worry — we’re here to help you navigate these hurdles and find the best options for your situation.