Getting a mortgage as a self-employed buyer looks a little different than it does for someone with a traditional W-2 job. It’s still very possible, but lenders calculate your income in a specific way that’s worth understanding upfront.
How Lenders Look at Self-Employment Income
Most lenders average your net income (after deductions) over the past two years using your tax returns. This means write-offs that lower your taxable income can also lower the income a lender counts toward your loan, even if your actual cash flow is strong.
What You’ll Typically Need
- Two years of personal and business tax returns
- Profit and loss statements, sometimes covering the current year
- Business license or proof the business has been active for at least two years
- Bank statements to support your reported income
Other Loan Options
If your tax returns don’t reflect your true earning power, bank statement loan programs may be a better fit, since they qualify you based on deposits rather than net taxable income.
Jesse Griffith works with self-employed buyers across the Space Coast regularly and knows how to structure a loan around real income, not just what shows up on paper. Call or text 321-501-9579 to talk through your options.