Self Employed
Being Self-Employed and Getting a Mortgage
Being self-employed you may think of getting a mortgage is out of your reach. But working for yourself does not necessarily mean you'll have to forgo the idea of owning a home.
We break down how to get a mortgage if you're self-employed, from what paperwork you'll need, to how your work history and credit score play into the equation.
Work History: Yes, It Matters
Your work history matters. Lenders want to see that you have been pulling in a steady income for at least two years and have the paperwork to prove it. This is especially important if you have a 1099.
So why does your work history matter? We want to ensure that you will be able to pay the mortgage, that you bring in a steady income, and that your income has trended upwards over the years.
One important thing to note: If you recently became self-employed, and have a W2 from a similar field, some lenders will make an exception to the two-year rule.
Required Documents:
| P&L must report business revenue | State or business license that you hold |
| 2 years personal federal tax returns, all schedules | 2 years signed IRS Form 1040 & IRS Schedule K1 |
| 3 months bank statements (all pages) | Business income must be stable and consistent |
| Case by Case 1 year of tax returns | Letter from CPA/ Tax Preparer |