Self-Employed Mortgage Loans: Documents and Preparation
If you are self-employed, start your mortgage conversation by identifying the property you want to finance and how your income is documented. The right paperwork depends on the loan program, business structure and income used to qualify.
What documents might a self-employed borrower need?
Ask your loan advisor for a program-specific checklist before gathering or uploading documents. Depending on the review, useful records can include:
- Personal and business tax returns, with relevant schedules, when requested.
- A current profit-and-loss statement and other business financial records.
- Personal or business bank statements.
- 1099 forms or other records of contract income, where applicable.
- Information about business ownership, operating history and existing debts.
Fannie Mae’s conventional-loan guidance generally calls for a two-year earnings history, with exceptions and documentation requirements that depend on the file. That guidance does not define the requirements of every alternative-documentation program. Read Fannie Mae’s self-employed borrower guidance.
Tax-return, bank-statement and 1099 documentation
Myers Capital Hawaii discusses alternative documentation options for eligible self-employed borrowers. Ask which options are available for your property and circumstances, what records are needed, and how qualifying income will be calculated. A bank statement or 1099 form alone does not establish loan eligibility.
Compare documentation requirements alongside the proposed loan terms and total costs. Do not assume that a program advertised around bank statements, 1099s or a profit-and-loss statement accepts every income source or eliminates all other documentation.
How is self-employed income reviewed?
Your lender will explain how the applicable program treats income, expenses and existing obligations. Keep business and personal records organized, and be ready to explain unusual deposits or changes in income. Gross deposits and take-home income are different figures; ask which amounts the lender can use.
Prepare for your first conversation
- Identify whether the property is a primary home, second home or investment.
- Explain whether you are purchasing or refinancing and your approximate timeline.
- Describe your business or contract work and the records you have available.
- Ask for the next documentation step through the lender’s secure process.
Explore home loan options. For a rental or other investment, review investment-property bank statement financing.
Discuss your self-employed mortgage options
Tell us your property goal and how you document income. We can discuss the next steps for your situation. Use the secure application process for financial documents; do not send tax returns or bank statements through a general contact message.
Ask about self-employed mortgage options
Program availability, documentation and approval depend on the borrower, property and applicable underwriting requirements.
