DONE FOR YOU BUYING A HOME WHEN YOU ARE SELF EMPLOYED
Below is this months DONE FOR YOU ARTICLE
This would be a good one to give out at association networking events and also to accountants
For example- if you are targeting a profession like plumbers- auto shop owners etc
You can offer to have your article printed in THEIR monthly newsletter with your contact information at the bottom and resource box
Simply customize this article for that profession…
NO ONE Else in your area is likley doing this..
Also prepare it so accountants can easily pass them out to their clients
Create a video and social media post based on this article…
Is there a realtor or accounant or financial planner that has a radio show in your area or a podcast— use this information to open the door and be a guest!
Let us know how it works out
Here's a polished article (approximately 750 words) that a mortgage loan officer can use as a handout, blog post, or downloadable resource for self-employed homebuyers:
How to Buy a Home When You’re Self-Employed: A Guide to Mortgage Options and Preparation
Being self-employed comes with the freedom of being your own boss—but when it comes to buying a home, that freedom can come with a few extra hurdles. If you’re self-employed and hoping to purchase a home, you might already know that proving your income and qualifying for a mortgage is a bit more complicated than it is for W-2 employees. But here’s the good news: it’s absolutely possible. With the right preparation and guidance, you can secure a mortgage that fits your situation and get the keys to your new home.
Why Self-Employed Borrowers Face Extra Scrutiny
Lenders want to make sure you’ll be able to pay back your loan. When you’re employed by someone else, they can verify your income through W-2s and pay stubs. But when you’re self-employed, your income may fluctuate, and you may take deductions that reduce your taxable income—even if you’re earning plenty.
That’s why lenders often require more documentation, ask more questions, and take a closer look at your finances.
But don’t let that discourage you. Thousands of self-employed buyers qualify for mortgages every year. Let’s walk through what you’ll need, what your options are, and how to position yourself for success.
Step 1: Get Your Documents in Order
Here’s what most lenders will ask for if you’re self-employed:
Last 2 years of personal and business tax returns
Profit and Loss (P&L) statements—especially if the current year isn’t over yet
Business bank statements (to verify cash flow)
A letter from your CPA confirming that you’ve been self-employed for at least 2 years
Your business license (if applicable) or documentation showing your business is active
Year-to-date income statement for the current year
Tip: Make sure your tax returns accurately reflect your income. If you’ve aggressively claimed deductions, your taxable income may be too low to qualify. Lenders go by net income, not gross revenue.
Step 2: Know Your Loan Options
Self-employed borrowers have several mortgage options. Here are some of the most common:
Conventional Loans
These are standard loans backed by Fannie Mae and Freddie Mac. You’ll usually need:
2 years of self-employment history
Strong credit (typically 620 or higher)
A solid down payment (5%–20%)
Tax returns showing consistent or increasing income
Many self-employed borrowers qualify for conventional loans if they can show stable income and strong financials.
Bank Statement Loans
If your tax returns don’t show enough income due to deductions, bank statement loans may be a good option. These loans look at 12–24 months of your business or personal bank statements to estimate income.
No tax returns needed
Great for freelancers, consultants, gig workers, and small business owners
Often require a higher down payment (10%–20%)
Interest rates are typically higher than conventional loans
Non-QM (Non-Qualified Mortgage) Loans
These are designed for borrowers who don’t meet the standard criteria of conventional loans. In addition to bank statement loans, non-QM loans may use:
Asset depletion (where your savings/assets are used to show ability to repay)
Profit and Loss only programs (no tax returns needed)
One-year self-employment history (if you have a strong background in your field)
These loans offer flexibility but can come with slightly higher rates and fees.
FHA Loans
FHA loans are backed by the Federal Housing Administration and allow lower credit scores and smaller down payments. You can qualify with:
As little as 3.5% down
2 years of self-employment history
Debt-to-income ratio up to 56% in some cases
However, you will still need to prove stable self-employment income with tax returns and documentation.
VA Loans (for Veterans)
If you’re a veteran or active-duty service member, VA loans are a fantastic option:
No down payment
No private mortgage insurance (PMI)
Flexible guidelines for self-employed borrowers
You’ll still need to provide income documentation, but VA lenders can be more accommodating.
Step 3: Prepare Your Finances
Lower your debt-to-income ratio (DTI)
Pay down high-interest credit cards and avoid new debt before applying.Boost your credit score
A score above 700 opens more options and better rates.Save for a strong down payment
While low-down-payment options exist, putting 10%–20% down makes you a stronger borrower.Avoid big financial changes
Don’t change business structures, switch banks, or open new lines of credit during the process.
Final Tips for a Smooth Process
Work with a loan officer who understands self-employed borrowers.
Not all lenders know how to properly calculate your income or offer the right loan options. Choose someone who does this often.Get pre-approved early.
This will show you how much you can afford and give you leverage when you’re ready to make an offer.Be honest and upfront about your income.
Surprises during underwriting can delay or derail your approval.
In Conclusion
Yes, it’s more work to buy a home when you’re self-employed—but it’s absolutely doable. With the right documentation, preparation, and loan officer by your side, you can confidently navigate the process and secure the home of your dreams.
If you’re ready to take the next step or just want to explore your options, reach out today. I’d be happy to review your situation and guide you every step of the way.
Dedicated TO Increasing YOUR PRODUCTION
Brian Sacks