Self-Employed · Jupiter & Florida
Can I get a mortgage if I’m self-employed?
The short answer: Yes, you may. Self-employed buyers get mortgages all the time. The question is how your income is documented. Standard loans usually use your tax returns. If write-offs make your taxable income look low, a bank statement loan may use 12 or 24 months of bank statements instead of tax returns to work out your income.
- Florida-licensed
- NMLS #2664300
- Smart Home Loans NMLS #1734077
Why is it harder to get a mortgage when you’re self-employed?
It usually isn’t about how much you earn. It’s about how it shows on paper. A salaried worker hands over pay stubs and W-2s. A business owner’s tax returns often show income after every legitimate deduction, which is good for taxes but can make income look lower to a lender. Income that goes up and down from year to year can also mean the lender averages it.
How do lenders usually verify self-employed income?
For standard programs, such as conventional, FHA and VA loans, lenders typically look at your personal and business tax returns, often for the last two years, and may ask for a year-to-date profit and loss statement. They usually use your income after expenses and may average two years. If your income has grown and your returns show it, a standard loan may be the best fit.
What is a bank statement loan?
A bank statement loan is a non-QM option where the lender looks at your bank statements instead of tax returns to calculate income. You usually provide 12 or 24 months of personal or business statements. The lender reviews your deposits, takes out transfers between your own accounts and, for business accounts, applies an adjustment for business expenses. The average that is left may be used as your monthly income.
These loans have different terms from a standard loan. A larger down payment is often needed and pricing may differ, so I compare them side by side with standard options before you decide. More detail is on my bank statement loans in Florida page.
How long do I need to be self-employed?
Typically about two years. Some lenders may accept one year, especially if you worked in the same field before going out on your own. A Jupiter contractor who was a W-2 electrician for ten years before starting a business is a very different file from a brand-new business in a new field.
What about 1099 contractors and gig workers?
If you are paid on a 1099, such as a real estate agent, consultant, nurse contractor or rideshare driver, you are usually treated as self-employed. Some programs may use your 1099 forms to work out income. Others use tax returns or bank statements. Steady deposits and a clear history help in every case.
What can I do now to make approval easier?
- Keep business and personal money in separate accounts
- Avoid large unexplained cash deposits, or keep a record of where they came from
- Have proof your business exists, such as a license, registration or CPA letter
- Talk to a mortgage advisor before you file your next tax return, and ask your tax professional about taxes
- Keep your credit clean and avoid new debt before you buy
Self-employed buyers across Palm Beach County, Martin County and St. Lucie County, from marine businesses in Jupiter to medical practices in Palm Beach Gardens, often have more options than they think. The first step is a simple look at how you earn.
Where I help: Jupiter, Palm Beach Gardens, Tequesta, North Palm Beach, West Palm Beach, Stuart, Port St. Lucie and across Florida, by phone, video or in person.
Quick answers
Can I get a mortgage if I’m self-employed?
Yes, you may. Lenders may use your tax returns, or with a bank statement program, 12 or 24 months of bank statements instead of tax returns, to work out your income.
What is a bank statement loan?
A non-QM loan where the lender looks at your bank statements instead of tax returns to calculate income, usually adjusting business deposits for expenses. Terms differ from a standard loan.
How many years of self-employment do I need?
Typically about two years, though some lenders may accept one year with prior experience in the same field.
Do 1099 contractors count as self-employed?
Usually yes. Depending on the program, income may be worked out from 1099s, tax returns or bank statements.
Self-employed and not sure what fits?
Answer a few quick questions in my Instant Income Review and see which loan programs may fit you, right now. No call unless you want one, and no credit pull.
Smart Home Loans NMLS #1734077 · Darryn Stephen NMLS #2664300 · Equal Housing Opportunity. Not a commitment to lend. Programs, terms and eligibility depend on the lender and the borrower’s profile. This is general information, not legal, tax or financial advice.