Mortgage Options for Self-Employed Borrowers
Being self-employed doesn’t mean you can’t qualify for a home loan—it just means you may need a loan program designed with your unique financial profile in mind. Here are some of the most common mortgage options available for self-employed individuals:
Bank Statement
Loans
Ideal for business owners or freelancers who don’t have traditional W-2 income. Instead of tax returns, lenders use 12–24 months of personal or business bank statements to verify income.
1099-Only
Loans
Perfect for independent contractors and gig workers. These programs use your 1099 forms (typically over the last 1–2 years) to determine qualifying income without requiring tax returns.
Profit & Loss (P&L) Statement Loans
Lenders may accept a year-to-date P&L statement, sometimes prepared by a CPA, as an alternative to traditional income documentation. This is useful for business owners with fluctuating income.
Asset Depletion
Loans
Designed for borrowers with substantial savings or investment accounts. Instead of income, lenders calculate your ability to repay the loan based on your assets.
DSCR Loans
(For Investors)
If you’re a self-employed real estate investor, a Debt Service Coverage Ratio (DSCR) loan uses rental income from the property to qualify—no personal income verification required.
Full Doc Conventional
Loans
Self-employed borrowers can still qualify for conventional loans using traditional documentation (tax returns, W-2s, etc.) if their income is consistent and well-documented.