How Self-Employed Borrowers Can Get Approved for a Mortgage

Securing a mortgage while self-employed may seem daunting, but it’s achievable with good preparation and loan products tailored to your circumstances. Below we’ve addressed some common concerns self-employed individuals might have when looking for a home loan.

Can I Qualify for a Loan Without a W-2?

Conventional loans typically require you to provide a W-2 tax document to verify your income, but certain loans, such as non-qualified mortgage (non-QM) loans, may allow you to qualify using 1099s, bank statements, profit and loss statements, business statements, or even asset-based documentation.

What If My Income Isn’t the Same Every Month?

Income that varies month-to-month isn’t unusual for entrepreneurs. As long as you can prove you have reliable cash flow over time, you may still qualify.

Do I Need Multiple Years of Self-Employment to Qualify?

Not always. Our product for self-employed borrowers enables you to qualify with just one year of self-employment experience, particularly if you’ve shifted from a similar W-2 position and can show steady income.

Can I Still Get Approved If My Credit Isn’t Perfect?

Yes, if you qualify. Our self-employed loan product allows for credit scores as low as 640. So if you took financial risks to grow your business, don’t assume homeownership is off the table for you. We’ll look at the full picture when considering your loan application.

Is It True Self-Employed People Can’t Get Jumbo Loans?

Jumbo loans are within reach for qualified self-employed people. If your finances check out, you may qualify for a loan over the standard conforming limit (currently $806,500 in most areas), with options that allow for a higher debt-to-income ratio and lower reserve requirements.

You Don’t Need a 9-to-5 to Buy a Home

Being self-employed doesn’t mean you’re locked out of the mortgage market. It just means finding a lender experienced with unconventional loans and less-traditional borrowers. If you’d like to find out more about our home loans, we’d be glad to answer your questions.