A mortgage if you are Self-Employed is not hard, provided you plan for it.

The credit, property review, and everything else is the same as a wage earner.

The major issue is how you report income: is it declared on tax returns or not? If you do not declare all your income, meaning you have lots of tax write offs, you still have options.

In all cases you need to be self-employed for 2 years.

  • Option 1: Use 2 Years of Tax Returns. 

If you have 2 years of tax returns, with strong income, then you can get an FHA, VA, USDA, or Conventional Loan.

This gives you the lowest interest rates and the most options for loans. The down payment ranges from 3% to 5%, and a credit score of 580 for a 3.5% FHA mortgage.

Your income on either Tax Form Schedule C or K1. Or, on the Adjusted Gross Income line. The lender takes the average over 2 years.

  • Option 2: Use 1 Year of Tax Returns.

Here you have 2 options: A Conventional Loan or an Alternate Mortgage. 620 Credit Score.

Say you declare no income or a loss 2 years ago, and $100,000 last year.

We use your last year’s returns. You need near perfect credit. Two years or more of active credit items (credit cards, auto loans, and personal loans). Perfect credit the last 3-4 years.

This is a Freddie Mac Mortgage. 3% down payment (first-time homebuyer) or 5% for others.

If your credit is so-so or bad, you can still get a mortgage. At a higher down payment, based on your credit score: from 10% to 25% down.

  • Option 3: Use Bank Statements to Show Income.

If you declare losses or no income, you can qualify for a mortgage using your bank statement deposits.

It can be 1 year or 2 years, and it can be personal statements or business statements.

For personal bank statements, add all your deposits, then divide by the number of months. That your “mortgage” income. Do the same for business statements, but use 50% of your deposits.

Examples. Personal Statements: $100,000 deposits = mortgage income of $100,000. Business Statements: $100,000 deposits = mortgage income is $50,000 a year.

Your down payment, based on your credit score: 10% to 25% down.


If you are an INDEPENDENT CONTRACTOR paid via 1099s, you can still get a mortgage.

You need to be 2 years as a 1099 with same employer. And, still getting a paycheck with no taxes taken out.

Your qualifying income based on last year’s 1099 and current paystubs.

You may not want to use a Bank Statement Mortgage. You have to many overdrafts. Your bank accounts are sketchy, such recently opened. Or you do not want to give 12 or 24 months of bank statements.

This program is ideal for: Freelancers, Realtors, Construction Workers, and Truckers. Get paid via 1099 – you may qualify.

Down payment based on Credit Score from 10% to 25% Down.

  • Option 5: Money in the Bank.

All you need is enough money in a bank account (personal or business) to cover 25% down payment and closing costs. It is often called a “stated income.” Your income and jobs are not listed.

Credit Score 640.

Here, you need Reserves. Reserves is money in your account equal to a mortgage payment. Reserves vary by credit score: from 6 to 36 months.

Getting a mortgage if you are Self-Employed is not hard. You need to plan for it or have enough cash to cover the down payment.

Contact me for a no-obligation, no pressure self-employment analysis.

For more info:

Chris Luis, My Favorite Mortgage Broker

Call or text me 941-219-4381

Write me: chris@chrisluis.com