30-yr fixed6.75%+0.0315-yr fixed6.05%+0.00FHA 30-yr6.55%+0.08VA 30-yr6.38%+0.08Jumbo 30-yr6.82%+0.11Updated September 1, 2026
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Your situation

Self-employed borrower

Lenders do not distrust the self-employed. They distrust income they cannot verify. Your job is to make your income legible.

Read the self-employed loan guide

Who this is for

  • Sole proprietors, S-corp and LLC owners, 1099 contractors, gig workers
  • Two years of history, or one year plus a prior W-2 career in the same field

How it works, step by step

  1. Pull your last two years of returns and compute the number a lender will: net profit, plus depreciation, minus any declining trend.
  2. If that number is too low, ask about bank statement loans before you give up.
  3. Do not file a heavy write-off return in the year you plan to buy.
  4. Keep business and personal accounts separate; mixed accounts slow underwriting.

Pros

  • Conventional loans are fully available with two years of returns
  • Alternative documentation loans exist when returns understate cash flow

Cons

  • More paperwork and longer underwriting
  • Non-QM loans cost more
  • A declining income trend is a red flag even if the level is high