1. Borrower and transaction
Share the occupancy, loan purpose, requested amount, business ownership, time in business, and how income is received.
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Self-Employed Mortgage Options
Use tax returns, bank statements, or professionally prepared profit-and-loss documentation to qualify for a primary residence, eligible second home, or investment property. Documentation paths are matched to how your business income is earned and recorded.
Eligibility and terms vary by occupancy, transaction, property, borrower, state, documentation type, and current program guidelines. Final underwriting and approved documents control.
Loan overview
Self-employed mortgage details
Use this summary to compare documentation paths, transaction types, loan amounts, reserves, terms, and pricing factors. Final qualification is based on the complete borrower and property file.
| Occupancy, purposes, and amounts | Eligible primary residences, second homes, and investment properties support purchase, rate-and-term refinance, and cash-out refinance transactions. Loan amounts range from $100,000 to $4 million based on occupancy, purpose, credit, documentation, property, and the complete borrower scenario. |
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| Income documentation paths | Documentation paths include Full Documentation with tax returns and a year-to-date profit-and-loss statement, 12 or 24 months of personal bank statements, 12 or 24 months of business bank statements, and professionally prepared profit-and-loss options. |
| Personal bank statements | Qualifying income is based on eligible deposits shown across 12 or 24 months of personal statements. Two months of business statements document business activity and transfers to the personal account. |
| Business bank statements | Qualifying income uses eligible business deposits with the applicable expense factor, a qualified third-party expense ratio, or a professionally prepared profit-and-loss statement. Business type, ownership share, deposits, transfers, and complete documentation determine the calculation. |
| Profit-and-loss documentation | A qualified tax or accounting professional prepares the eligible profit-and-loss statement. P&L Plus uses recent bank statements to support the stated income. The preparer, covered period, ownership percentage, and supporting records must meet current guidelines. |
| Borrower and transaction review | A borrower with at least 25% ownership in a business, or income reported on Form 1099, is treated as self-employed. Credit, housing history, business history, income stability, occupancy, purpose, and the complete borrower profile determine eligibility and terms. |
| Cash requirements | Reserve requirements range from 0 to 6 months of the housing payment based on loan amount, leverage, occupancy, and purpose. Eligible cash-out proceeds satisfy reserves. Down payment or equity, cash to close, reserves, and post-closing liquidity remain separate requirements. |
| Available terms and pricing | Available structures include fixed-rate, adjustable-rate, and eligible interest-only options. Pricing varies with occupancy, documentation, credit, loan amount, property, leverage, reserves, market conditions, and other scenario details. Request a current scenario review instead of relying on a generic rate comparison. |
Eligibility and terms vary by transaction, property, borrower, state, and current program guidelines. Final underwriting and approved documents control.
Ready to discuss your self-employed mortgage options?
Self-employed borrowers document income through tax returns, bank statements, or professionally prepared profit-and-loss records. Occupancy, purpose, business history, credit, assets, property, and the complete file determine the documentation path and current terms for the transaction.
Self-Employed Mortgage Documentation
A self-employed mortgage review evaluates supportable income and the borrower's complete financial profile. Documentation paths use tax returns, personal bank statements, business bank statements, or a professionally prepared profit-and-loss statement. Alternative documentation still requires full underwriting. Credit, housing and business history, assets, reserves, property eligibility, valuation, title, insurance, occupancy, and current guidelines apply. The documentation method matches how income is received and recorded.
Scenario review
What to prepare for a self-employed mortgage review
A complete scenario helps identify the current documentation path and the records needed for the borrower and property.
2. Income records
Provide the available tax returns, year-to-date profit-and-loss statement, personal or business bank statements, and professional income records that apply.
3. Property and assets
Be ready to discuss the property, purchase price or value, title, insurance, available funds, large deposits, reserves, and other properties owned.
Ready for a documentation review?
Send the scenario basics and discuss current income-documentation paths, eligibility, and available structures with theLender.
Get an Estimate
Share the borrower, income-documentation, property, and transaction details for a scenario review. The theLender team will review current eligibility, required records, and available structures. This is not an approval, commitment, or rate quote.
Self-Employed Mortgage Options
Share a few details to request a current self-employed mortgage scenario review.
Frequently Asked Questions
1. Which income documents are used for a self-employed mortgage?
Documentation paths include tax returns with a year-to-date profit-and-loss statement, 12 or 24 months of personal bank statements, 12 or 24 months of business bank statements, and eligible professionally prepared profit-and-loss documentation. Occupancy, purpose, business history, income pattern, and current guidelines determine the required records.
2. How are personal or business bank statements reviewed?
Personal-statement analysis uses eligible deposits across the applicable statement period and supporting business statements. Business-statement analysis applies the applicable expense factor, a qualified third-party expense ratio, or a professionally prepared profit-and-loss statement. Ownership share, transfers, unusual deposits, business type, and complete records affect the calculation.
3. How is pricing determined for a self-employed mortgage?
Pricing varies with occupancy, loan purpose, income-documentation type, credit profile, loan amount, property, loan-to-value ratio, reserves, market conditions, and other scenario details. A current quote based on the same assumptions provides a more useful comparison than a generic rate range.
4. How much business history and documentation is required?
The selected path uses 12 or 24 months of bank statements or profit-and-loss records. Full Documentation uses personal and business tax returns plus current financial records. Business history, income stability, occupancy, purpose, and current guidelines determine the exact period and supporting records required.
5. Which property occupancies are eligible?
Eligible primary residences, second homes, and investment properties use the applicable consumer or business-purpose path. Investment business-purpose transactions require business or investment use, and the borrower may not occupy the subject investment property. Occupancy, purpose, property, state, and current guidelines control eligibility.