Self-Employed and Ready to Buy? Here’s How to Make It Happen

If you’re self-employed, you’ve probably heard the phrase “it’s harder to get a mortgage when you work for yourself.” That might’ve been true once — but not anymore.

Today’s lending landscape is built to recognize real income, not just what fits neatly on a tax return.

Whether you run a business, freelance, or earn 1099 income, there are smart, flexible ways to qualify.

1. Bank Statement Loans: Real Income, Real Approvals

Instead of relying on adjusted gross income (which can look low after write-offs), these programs use 12–24 months of personal or business bank statements to show cash flow. It’s one of the most popular self-employed programs right now because it paints the full picture of financial strength.

2. Asset-Depletion Loans

For those with strong savings or investment accounts, asset-depletion loans calculate monthly income based on available assets — without requiring traditional job income. Perfect for semi-retired entrepreneurs or investors living off portfolio returns.

3. DSCR Loans for Real Estate Investors

If you own or plan to buy rental properties, DSCR (Debt Service Coverage Ratio) loans qualify you based on the property’s income — not your personal tax returns. It’s streamlined, fast, and built for portfolio growth.

4. Documentation Tips That Make the Difference

Even with flexible programs, organization is everything. Keep your:

• Most recent business license or CPA letter handy

• Two years of tax returns (even if not required)

• Year-to-date profit & loss statement ready

  
  

Borrowers who stay organized tend to close faster — sometimes in 15 days or less.

The takeaway: being self-employed no longer means waiting on the sidelines. Lenders understand modern income streams, and today’s programs are built for them.

If you’re a business owner, freelancer, or 1099 earner, your path to homeownership might be simpler than you think. The key is partnering with a lender who knows how to tell your financial story — and turn it into an approval.

You built your business with effort and creativity.

Getting a home loan should reward that, not penalize it.