Nearly 15 million Americans are self-employed according to research – and you may very well be one of them if you’re reading this.  There are a few gray areas that people are often unaware of when it comes to applying for a mortgage when you’re self-employed. But they’re no cause for worry!  Once you know them, you’ll be able to make a game plan that will help.  We’ve gathered our mortgage tips for the self-employed below –


  • You’ll need to be self-employed for two years minimum before you apply. This is because lenders will look at the last two years of your income when you apply.  You’ll need to show two years of income tax to qualify for any loan.
  • Lenders go by adjusted gross income. This means your income after your expenses have been deducted.  If you know you’re planning on applying for a mortgage, be careful what you write off for your business for those 2 years we talked about above.  It’s awesome to be able to write off expenses in the short run on your taxes, but on paper it can make it look like your take-home income was significantly lower than what it actually was.  It’s a fine balance – so just be thoughtful in what you choose to do here.
  • Except for the above, your mortgage process is exactly the same. So if you build a plan knowing the above, you should be able to apply successfully for a loan.  It’s when people don’t know about their tax write-offs or need to show income for two years that unexpected things come up.

We love the entrepreneurial spirit that leads people to be self-employed.  We’d love to help you if you have any questions about mortgage tips for the self-employed before you apply!  And if you’re ready to apply and would like a lender with similar values… give us a call!  We are faith-based and family oriented, and we work to get the best we can for you, no matter what your situation.




The Christian Mortgage Mom