Self employed? Here is how you actually get a mortgage.

Guide · Self Employed and Business Owners

If you own a business, contract as a 1099 earner, or write off enough that your tax return makes you look broke on paper, you have probably been told a mortgage will be a headache. With the wrong lender, it is. With the right programs, it is straightforward, and this is the part of the business I specialize in.

Why being self employed trips up traditional lenders

A traditional, fully documented loan qualifies you on your net income, meaning the number at the bottom of your tax return after every deduction. That is great for keeping your tax bill down, but it works against you when you apply for a mortgage. The write offs that save you money in April can make it look like you do not earn enough to buy.

Most banks only offer that one path. So a perfectly successful business owner gets told no for reasons that have nothing to do with whether they can actually afford the home. As a broker, I am not stuck with a single guideline. I can match your real income picture to a program built for it.

The programs that fit business owners

Bank statement loans

Instead of tax returns, the lender looks at twelve to twenty four months of your bank deposits to calculate income. If your business runs real money through the account, this often qualifies you for far more than your tax return would. Personal or business statements can work depending on the program.

• Best suited for owners with strong cash flow but heavy write offs
• Qualifies on deposits, not net taxable income
• Typically needs you to have been self employed for roughly two years

1099 income loans

If you are paid as a contractor and receive 1099 forms, some programs qualify you straight off those forms with a simpler expense calculation, without full tax return gymnastics required.

Profit and loss based loans

For established businesses, certain programs can qualify you from a profit and loss statement, sometimes prepared by your accountant, with limited additional documentation. Useful when your books tell a cleaner story than your tax return does.

A loan built for rental property

Buying a rental? A loan that qualifies on the property itself ignores your personal income entirely and looks at whether the rent the property brings in covers its own payment. If the numbers on the property work, you can often skip personal income documents altogether, which is ideal for investors scaling a portfolio.

What you will typically need

It varies by program, but be ready with some combination of the following:

• Twelve to twenty four months of personal or business bank statements, all pages included
• 1099 forms if you contract
• A recent profit and loss statement
• A business license or documents showing your business structure, such as an LLC or an S corporation
• A government issued photo identification and authorization to pull credit

You will not necessarily need all of these. Part of my job is figuring out the lightest documentation path that still gets you approved.

A few moves that make approval easier

• Keep business and personal banking reasonably separated
• Avoid large, unexplained deposits right before applying
• Do not open new credit or make big purchases in the middle of the process
• Loop me in early, before you are under contract, so we build the file right the first time

Let us see what you qualify for

If a bank has told you no, that is often the start of the conversation, not the end of it. Send me a quick picture of your situation and I will tell you honestly which of these programs fits and what it would take.

This guide is general education, not a commitment to lend or an offer of credit. Program availability, terms, and qualification guidelines vary by lender and can change, and all loans are subject to underwriting approval. For guidance specific to your situation, reach out directly. Garrett Potz, NMLS #631592 · Affinity Home Lending, Company NMLS #1181151 · Equal Housing Lender.