🏡 How to Get a Mortgage When You're Self-Employed in 2025

Being your own boss has its perks — flexibility, independence, and the ability to build something on your own terms. But when it comes to getting a mortgage, self-employment can make things a bit more complicated. The good news? It’s absolutely possible — and more common than ever.

Here’s what you need to know to navigate the mortgage process as a self-employed borrower in 2025.

📋 What Lenders Look For

Lenders want to know one thing: Can you repay the loan? For self-employed borrowers, that means proving your income is stable, consistent, and sufficient.

✅ Key Requirements:

• At least 2 years of self-employment history (some lenders may accept 1 year with prior related experience)

• Two years of personal and business tax returns

• Profit and loss statements

• 12–24 months of bank statements

• A strong credit score (ideally 680+, though 620 may qualify)

• A manageable debt-to-income (DTI) ratio — typically under 43%

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🧾 Documents You’ll Need

To verify your income and business health, be prepared to provide:

• Tax returns (personal and business)

• 1099 forms (if applicable)

• Bank statements

• Year-to-date profit and loss statement

• Business license or CPA letter (if applicable)

Pro tip: Keep your business and personal finances separate — it makes underwriting much smoother.

🏦 Mortgage Options for the Self-Employed

Not all loans are created equal. Here are some of the best options for freelancers, gig workers, and entrepreneurs:

1. Bank Statement Loans  

   • No tax returns required

   • Income is based on bank deposits

   • Ideal for those with high write-offs

2. Non-QM (Non-Qualified Mortgage) Loans  

   • Flexible documentation

   • May accept one year of self-employment

   • Higher interest rates, but more lenient

3. FHA Loans  

   • Low down payment (as little as 3.5%)

   • Accepts lower credit scores

   • Requires two years of self-employment

4. Conventional Loans  

   • Competitive rates

   • Stricter documentation

   • Best for borrowers with strong credit and income history

     
     

💡 Tips for Success

• Boost your credit score before applying

• Save for a larger down payment (5–10% is a good target)

• Pay down debt to improve your DTI

• Work with a lender experienced in self-employed mortgages

  
  

✨ Final Thoughts

Getting a mortgage when you're self-employed isn't impossible — it just takes preparation, organization, and the right lender. With the freelance economy booming in 2025, more lenders are adapting to non-traditional income streams than ever before.

So if you’re ready to buy a home, don’t let your self-employed status hold you back. Start gathering your documents, schedule time to chat with me and take the first step toward homeownership.