List Of Mortgage Lenders for Self Employed Borrowers

Many clients applying for a mortgage on our website is looking for a financing without having their W2 forms from last 2 years. There is not many reliable mortgage lenders for self-employed who do financing for company owners. These are business owners, realtors, commission salary workers who have 1099 from last few years instead of just regular salary income provided by their employee. So can I get approved for a mortgage if I am self-employed? Yes, you can apply with us for a loan targeted to self-employed people who are business owners and they can still qualify for a mortgage and buy their dream home.

We do self-employed financing at FHA Lend, and we are licensed in 48 states, our main goal is to help people with lower credit score or without W2s to pre-qualify for a loan so you can start shopping for a house tomorrow.

Who is a Self-employed Person in HUD Guidelines

Under HUD guidelines, self-employment is defined as any trade or business in which an individual has a “material participation”. This means that the applicant must have ownership in the business and be actively involved on a daily basis for at least two years leading up to the loan application date. In addition, HUD requires that applicants demonstrate stability and predictability of their income over time.

Mortgage Lenders or Mortgage Brokers consider anyone with a 25% or greater stake in a company, or someone who is not employed through the conventional W-2 system, to be self-employed. If you’re self-employed, there are plenty of ways your income can qualify for a mortgage loan. Mortgage lenders typically consider any reliable source of steady earnings that is continuous and consistent, including but not limited to:

  • Interior Design
  • Realtor
  • Savvy entrepreneurs
  • Freelancers
  • Contractors
  • Seasonal work
  • Gig work and side jobs
  • Catering Services
  • Virtual Assistants
  • Personal Trainer

Guidelines To Qualify For a Self-Employed Mortgage Loan

  1. Bank Statements from last 1-2 years
  2. Minimum Downpayment of 5-15%
  3. FICO credit score of 580+
  4. Two years of business tax returns including schedules K-1, 1120, 1120S
  5. Business License (proof of business)
  6. You might need also Profits & Loss Statement, 1099 form
  7. List of assets
  8. List of Debts

Even if you feel that you won’t meet the qualifications or have been informed by other lenders that your application will not be approved, we can still assist. You don’t need to worry about meeting all of the guidelines above or having self-employment for less than two years. We’ll find a suitable mortgage option for you. Please contact us at 888-900-1020 to see your options.

Mortgage Lenders For Self-employed List for 2023

Home Express

Home Express offers Bank Statement Program to utilize bank statements in order to verify income for self-employed Borrowers who do not have the required W-2s and check stubs necessary for conventional loans. They acknowledge that those who are self-employed often possess more intricate sources of income, which is why they evaluate various elements such as cash flow and bill/lease payments when approving Non-QM loans.

Change Mortgage

Change Mortgage are specializing lending for people who fall under any of the following categories may have trouble obtaining loans: self-employed, small business owners, those with unpredictable or changing income streams, retirees, seasonal and gig laborers, property investors/owners/employees dealing in cash businesses; newly employed individuals transitioning from health issues or life events; recent immigrants trying to access trapped home equity. So much more than just those collecting disqualifying earnings! .

Carrington Mortgage Services

With Carrington, you can qualify for an FHA, VA, or USDA loan with a credit score of 500. They offer financing in all 50 states, and they have offices in AR, CA, CT, FL, IN, and MD. They have been in business for 18 years and are one of the largest non-QM lenders next to Angel Oak. They offer 15- or 30-year fixed rate loans and adjustable rate mortgages (ARM) with 5/1, 7/1, or 10/1 loan terms.

Loan Stream Wholesale

Loan Stream Mortgage has been around for 22 years, and they are licesensed in 39 states they offer NanQ, Non-QM programs, maxONE (100% CLTV DPA Program, JumbONE for larger loan amount, Plus Conventional and Government (FHA, VA, USDA)

Citadel Servicing/Acra Lending

As one of the leading NON-QM lenders, Citadel (now Acra Lending) proudly offers loans to borrowers with credit scores as low as 500. With licenses in 38 states and DC nationwide, this company provides a reliable avenue for accessing financing solutions no matter your location!


Newrez is nationwide lender who specialize in non-qm loans licensed in 50 states. Next to Angel Oak and Newrez it has good reputation on closing loans on time and providing programs like: bank statement, .

Oaktree Funding

Oaktree Funding is licensed in 39 states and offers NonQM Advantage and bank statement programs for investors, Jumbo Advantage and Agency Advantage programs.


Homebridge is licensed in 49 states and was established in 2012 and based on Irvine California, is devoted to delivering the best value possible for our clients. We do this through competitive pricing, novel products offerings. They provide mortgage programs for self-employed, investors, asset-based, investor cash flow product, Asset Qualifier product and The 1099 Only product.

On Q Financial

On Q Financial, Inc. is licensed in 46 states, they

Eligibility Criteria’s For Self-Employed Borrowers

When it comes to eligibility criteria for self-employed borrowers, HUD looks at several factors. These include annual income, cash flow/liquid assets available, credit history, and debt-to-income (DTI) ratio. HUD also considers how long the applicant has been self-employed and the nature of their business.

We have access to thousands of products from FHA, USDA and VA loans to NON-QM, Asset Depletion, Bank Statement programs and DSCR loans for investors. If we not going to find you a product, than you local credit union or your local bank will not do it. As mortgage brokers with access to 200 lenders and different wholesale loan providers who don’t require a 640+ credit score for pre-approval – our goal is to provide you all available options so no one is left behind.

Programs For Self-employed People

Bank Statement Loans

If you are applying for a self-employed mortgage, these programs will require 12-24 months of your business and/or personal bank statements to ensure that regular deposits (income) have been made. Fortunately, no tax returns will be requested; this is the basis upon which approval can be granted.

One Year Tax Return Mortgage

The one year tax return mortgage is perfect for those who have just recently become self-employed. This innovative program allows borrowers to qualify with only a single year of fully documented income on their taxes, giving recent entrepreneurs the chance at financing they need and deserve.

Self Employed vs W2

Steps To Qualify With a Self-Employed Mortgage Lender

If you’re self employed, it is wise to initiate the following measures well in advance of submitting a loan application:

  • credit Score – highest possible credit score you can attain, since it will not only help with your down payment requirement but also influence the interest rate you receive. There is no exact minimum credit score required, so do whatever it takes to get yours as high as possible!
  • documents – As a self-employed individual, lenders will require 12-24 months of bank statements to use as evidence of your income when you apply for a mortgage. It is essential that all business revenue be deposited into the appropriate accounts so it can be easily accessed during this process. To avoid any complications down the line, make sure to deposit cash payments right away!
  • cash – Make sure to set aside a 5%-10% down payment for your self-employed mortgage. This amount is typically required by lenders and will vary depending on your credit score.

Required Documents for Self-Employed People

Applying for a mortgage as a self-employed is different than for a regular FHA or VA loan. As such, lenders require extensive financial information to get started. If you’re self-employed, it’s likely that at least two years of your full financial history will need to be provided as documentation.

Self-employed individuals have the same access to mortgages as traditionally employed people. Applying for a mortgage is no different if you are self-employed – the qualifications remain identical: credit score, debt load, down payment amount and income all need to align with requirements. With this in mind, it’s easy to see that getting your foot on the property ladder doesn’t take any extra legwork when you’re working independently.

Check If You Are Eligible

While the documentation of income for self-employed individuals can be more intensive than that of W-2 employees, as long as your cash flow meets loan qualifications and you’re able to provide reliable proof of steady revenue sources, purchasing a house or refinancing should still be an option. Therefore, don’t let being self-employed stop you from achieving your dreams.

To attain a home loan, most mortgage lenders necessitate at least two years of steady self-employment. Lenders define “self-employed” as someone with an ownership stake of 25% or more in a business, or who does not receive W2s from their employer. Luckily for some, there’s the possibility to bypass this two year prerequisite:

  1. If you’ve been self-employed for one year and can present evidence of your two years in a related field, you may be eligible. Demonstrate that the income generated from your new role is equal to or greater than what was earned in the W2 position and voila! You’re all set.
  2. Some lenders will accept one year of related employment, plus a single year of formal education or specialized training experience as an acceptable work history.

Best Mortgage Lenders for Self Employed Borrowers

When searching for the best mortgage lenders to support self-employed workers, it is important to identify programs tailored towards those who can use their tax returns as proof of income, or no doc loans. While traditional banks are typically not the most suitable choice when considering self employed borrowers due to how they view net income after deductions and write offs; specialized mortgage lenders will offer bank statement loans, stated income options, and other innovative loan solutions that don’t require tax returns.

Applying with an Amended Tax Return as Self-Employed Individual

Amending your tax return can happen for a variety of reasons, such as filing with incorrect information or to make changes to a return that was already filed. When filing amended returns, it’s important to be accurate and submit the correct information in order to avoid any potential complications with the IRS.

When applying for a mortgage, lenders require borrowers to provide proof of their income by submitting tax returns. When lenders review amended tax returns, they look for proof of consistency with the original return and any changes that were made. Lenders also want to make sure the taxpayer was willing to comply with filing accurately and correctly.

When applying for a mortgage with an amended tax return, it’s best to be upfront and transparent about the changes made. Make sure to provide a copy of all returns – both original and amended – along with an explanation of the changes. It’s also important to provide documentation that supports any adjustments or changes that have been made, such as bank statements or proof of deductions.

Can I Qualify With 1 Year Employment History as Self-Employed?

Mortgage lenders typically require that potential borrowers demonstrate at least two years of consistent and reliable self-employment before they will be eligible for a home loan. If you’ve been self-employed for a year and have proof of your two-year track record in the same field, then you are eligible! You must present evidence that your current position brings in an income equivalent to or higher than what it was prior as a W2 employee. Some financial institutions will grant you an approved work history if they can validate one year of related employment, plus a year’s worth of formal education or training.

What income do banks look at for self-employed?

Obtaining a mortgage as a self-employed borrower is possible, but you’ll need to provide the appropriate documents in order for lenders to consider your application. This usually consists of two years of personal and business tax returns with schedules K-1, 1120, 1120S; plus any other relevant documents such as a business license. With these papers presentable, obtaining that much-desired loan should be achievable!

How much can a self-employed person borrow on a mortgage?

Generally, you have the capacity to take on a mortgage of up to 2-2.5 times your gross income. The total amount for monthly loan payments is formulated from four factors: principal, interest rate, taxes, and insurance (known as PITI).

How do loan companies verify self-employment?

To purchase a $300K home, it is essential to have an annual salary of between $50,000 and $74,500. However this can be flexible depending on your credit score and other factors such as debt-to-income ratio, type of loan term you opt for and the mortgage rate applicable.

How much income do you need to qualify for a $300,000 home as self-employed?

When it comes to obtaining a mortgage, many financial institutions require that you’ve been self-employed for at least two consecutive years. Some self-employed borrower can qualify with 12 months (1 year) of being self-employed for a bank statement loan where they don’t need to provide tax returns.

How much money do you need to make to buy a $400,000 home as self-employed?

To finance a $400,000 home, you need to provide a down payment of at least 10%, which equates to $55,600 in cash. If you’re considering taking out a 30-year mortgage loan for this amount, your monthly income should be no less than 8200 dollars and never have more than 981 dollars of debt payments each month.

How to qualify for a 600k mortgage as self-employed?

To be able to afford a 600k mortgage, you’ll need an annual income of $222,019. This amount is determined by taking into consideration that your monthly payment should account for 24% of your total salary. Therefore, your monthly income must come close to the figure of $18,502 in order meet these requirements and have enough money reserved for other expenses too. Additionally, if you opt for this loan option then it will also require a regular payment plan with an approximate fee per month set at $4,440 dollars or more depending on interest rates and other factors.

Do self-employed individuals have access to down payment assistance?

Nowadays, it varies depending on the down payment assistance program. Although several of these programs are designed for low-income households, most do not explicitly specify that self-employed individuals can’t apply. To get a definitive answer, let us help you identify all the available options in your region and assess if you’re eligible to take advantage of them!

My Spouse Is Not Self-Employed, What to Do?

With the right criteria, most mortgage loan lenders are more than willing to accept a joint application (your spouse or co-borrower) with one self-employed applicant and another traditionally employed. As long as the former meets income guidelines listed above and all applicants meet their individual requirements, you can rest assured that your loan is in good hands. Additionally, if you qualify for a loan on your own accord but have an extra co-borrower who happens to be self-employed, then there’s no need to worry! The lender will simply ignore this source of income when underwriting occurs.
Don’t let your business write-offs prevent you from obtaining home financing! Numerous startups, both large and small, may not be profitable on paper due to the losses they display on their tax returns. Although these deductions can help reduce taxes owed, they could also decrease qualifying taxable income when applying for a loan. Ensure that your hard work is rewarded by understanding how write-offs will affect mortgage eligibility.

How To Qualify For a Self-Employed Mortgage

The advantages of conversing with an independent mortgage lender ahead of time are invaluable. Whether you’re pondering about buying a home or refinancing, speaking to a qualified lender soon is the best decision for your future. Allow us to connect you with someone reliable who can respond to all your concerns and give you insight as to whether you meet the requirements, along with what kind rate might be appropriate for your situation.

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