Borrower pathway
Mortgages for self-employed borrowers
Being self-employed does not push you into a special loan. Many business owners qualify for standard conventional financing. Alternative documentation exists for the cases where tax returns understate what a business actually produces.
Questions worth asking early
- Will a lender use my net income or my gross revenue?
- Do my write-offs mean I cannot qualify for a standard loan?
- What documentation should I start gathering?
- Is alternative documentation worth it in my situation?
Loan options
Programs that apply to self-employed & business owners
Each page sets out what the program is, who it tends to suit, and which terms the lender decides rather than us.
Conventional loans
A conventional loan is a mortgage that is not insured or guaranteed by a government agency. Most conventional lending follows Fannie Mae or Freddie Mac guidelines, which is why the requirements are relatively consistent from lender to lender.
Read moreBank statement loans
A bank statement loan derives qualifying income from deposits into your business or personal accounts over a defined period, instead of from tax returns. It suits business owners whose returns understate the cash the business produces.
Read moreProfit and loss statement loans
A P&L loan uses a profit and loss statement prepared by a licensed professional as the basis for qualifying income, sometimes with supporting bank statements. Availability and requirements vary considerably between lenders.
Read moreAsset depletion loans
An asset depletion loan converts eligible assets into a qualifying income figure by dividing them over a number of months set by the lender. It is designed for borrowers with substantial assets and limited documentable income.
Read moreJumbo loans
A jumbo loan is one that exceeds the conforming loan limit applicable to the property's county and unit count. Because it cannot be sold to Fannie Mae or Freddie Mac under those limits, the lender holds more risk and sets its own requirements.
Read moreDSCR loans
A DSCR loan qualifies an investment property on the property's debt service coverage rather than on your personal income documents. It is a different way of measuring capacity to repay — not an absence of underwriting.
Read more
What happens next
A first conversation, not an application
Nothing about getting in touch commits you to anything.
- We talk about what you are trying to do and what is in the way. No documents needed for that.
- If a program looks like a fit, we explain what the lender will want to see and what it is likely to cost.
- When you decide to move forward, documents and identifiers go through a secure portal — never an email or a web form.
- You will get a written estimate of costs before you commit to anything.
Where to check for yourself
Program rules are set by these organizations and are updated periodically. Where this page and an official source disagree, the official source is correct.
- Explore loan options (opens in a new tab) — Consumer Financial Protection Bureau
- Selling Guide (opens in a new tab) — Fannie Mae
- Single-Family Seller/Servicer Guide (opens in a new tab) — Freddie Mac
Questions we get from this group
- Do self-employed borrowers have to use a bank statement loan?
- No, and it is usually worth checking standard conventional financing first. Conventional guidelines have an established method for calculating self-employment income from tax returns and business returns. Alternative documentation is useful when that calculation does not reflect the income the business actually generates, not as a default.
- How much self-employment history do lenders want to see?
- Most programs look for a track record rather than a single good year, and the required history varies by program and lender. Some will consider a shorter history with compensating documentation. Ask for the specific requirement on your file.
- Does alternative documentation mean easier approval?
- No. It means a different way of documenting income. Credit, reserves, down payment, the property and the overall file are still underwritten, and alternative documentation programs are often priced differently from standard conventional financing.
Talk it through before you start shopping
Bring your situation, not your paperwork. A first conversation is about which programs actually fit and what the numbers look like — no documents, no credit pull, no commitment.