01
Two years of history
Most lenders want 2 years of self-employment income. Fannie Mae can accept 12 months when your latest returns show a full year from the current business and you earned similar income doing similar work before.
Mortgage Rates
Buying a home when you work for yourself.
Self-employed buyers get approved for mortgages every day. The difference is the paperwork, and knowing how a lender reads your tax returns before you apply. Compare current purchase rates below, then use the checklist to get your file ready.
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Today’s Rates
Compare home purchase mortgage rates
Enter your ZIP code, home price and down payment to see offers from partner lenders. Rates move every day, so treat these as your starting point and get an official Loan Estimate before you commit to anything.
Self-Employed Checklist
What lenders look at when you run your own business
A W-2 employee hands over a pay stub. You hand over your tax returns, and that changes everything. Here is what to get right before you apply.
02
Profit, not revenue
Your store might do $1M a year in sales. The lender cares about your taxable profit after write-offs, usually averaged over 2 years. Every deduction that lowers your tax bill also lowers what you qualify for.
03
Clean, separate accounts
Run business money through a business bank account and pay yourself on a schedule. Big unexplained deposits into your personal account get flagged, and you will be asked to document every one of them.
04
A bigger file
Expect to provide 2 years of personal and business tax returns, a year-to-date profit and loss statement, business bank statements and proof your business exists. Get it all in one folder before you apply.
Plan B
When your tax returns don’t tell the whole story
If heavy write-offs left your taxable income too low, a bank statement loan is the usual alternative. These non-QM loans look at 12 to 24 months of deposits instead of your tax returns.
The tradeoff is real: rates are typically higher and the down payment bigger than on a conventional loan. Compare both before you decide, and if a purchase is a year or two out, talk to your CPA now about how your write-offs will look to a lender.
Why I put this page together
I have been running online stores since October 2010, and almost everyone I work with is self-employed: store owners, agency owners, freelancers. Once the business is working, buying a home is a natural next goal, and self-employed is exactly where mortgage applications get harder.
It is very doable. It just takes more planning than it does for someone with a salary. This page is the prep I would want before talking to a lender, plus a quick way to compare rates.
Keep Reading
More money guides for business owners
- How to File Taxes as an LLC OwnerHow your business income shows up on your return
- Ecommerce Bookkeeping for BeginnersClean books make an underwriter’s job easy
- How to Build Business Credit for Your StoreKeep business debt off your personal profile
- Best Credit Cards for Ecommerce BusinessesSeparate your business spending from day one
- Tax Considerations for High-Ticket DropshippersPlan write-offs with the bigger picture in mind
- Best Bank Accounts for American ExpatsKeep US banking in order if you live abroad
More Resources
Frequently asked questions
How long do I need to be self-employed to get a mortgage?
The standard is 2 years. Fannie Mae guidelines allow 12 months in some cases, when your most recent tax returns show a full year of income from the current business and you have a history of similar income in the same line of work.
If you are under a year, most conventional lenders will tell you to wait. Use that time to keep your books clean and your income steady.
Do lenders use my gross revenue or my profit?
Your profit. For most conventional loans the lender works from your tax returns, which means net income after deductions, typically averaged over the last 2 years. If income dropped from one year to the next, expect the lender to use the lower number or ask you to explain it.
Can I buy a house through my LLC?
Not with a standard owner-occupied mortgage. Conventional home loans are made to people, not companies. Buying in an LLC usually means an investment property loan such as a DSCR loan, which qualifies on the property’s rental income and generally comes with higher rates.
If it is the home you will live in, plan on buying it in your own name.
Will comparing mortgage rates hurt my credit score?
Browsing rates is free. When you apply or get preapproved, the lender does a hard pull. Credit scoring models treat multiple mortgage inquiries within a short window (14 days in some older models, up to 45 days in newer ones) as a single inquiry, so do all your lender shopping within about 2 weeks.
Can I get a mortgage while living abroad as a digital nomad?
It is possible, but be straight with the lender about where you live. A primary residence loan assumes you will actually live in the home. If you travel full time, a second home or investment property loan is usually the honest fit, and those come with stricter terms.
Get a US address, US bank accounts and your US credit history in order before you start.
What is a bank statement loan?
A non-QM mortgage that qualifies you on the deposits in 12 to 24 months of bank statements instead of your tax returns. It is built for self-employed borrowers whose returns show low taxable income. Expect a higher rate and a larger down payment than a conventional loan.