Question 1

Can I get a mortgage if I'm self-employed?

Accepted Answer

Yes. Self-employed borrowers can qualify for conventional, FHA, jumbo and other loans using tax returns, and for non-QM programs that use bank statements, a profit-and-loss statement, 1099s or assets. The right option depends on how your income is documented.

Question 2

How long do I need to be self-employed?

Accepted Answer

Many programs look for two years. Some conventional loans can work with at least one year if you worked in the same line of work before, and some non-QM programs have their own rules. We'll check what fits your history.

Question 3

Do I need two years of tax returns?

Accepted Answer

Often, but not always. Some conventional approvals need only the most recent year, and bank-statement programs generally qualify you on statements instead of tax returns. Lenders may still ask for other documents to verify the business.

Question 4

How is income calculated on a bank-statement loan?

Accepted Answer

The lender adds up eligible deposits over 12 or 24 months, leaves out transfers and other non-business deposits, and applies an expense factor or your documented expense ratio. The result is divided into a monthly income figure.

Question 5

Are bank-statement loans more expensive?

Accepted Answer

Usually, yes. Rates and costs are typically higher than a conventional loan, and the down payment and reserve requirements are often larger. That's why we check conventional options first.

Question 6

Should I take fewer write-offs so I can qualify?

Accepted Answer

Don't change how you file just to get a mortgage. Tax decisions belong with your CPA. We'll show you what your current returns and bank statements support, and you can plan from there.

Question 7

Is 1099 income considered self-employed?

Accepted Answer

Generally, yes. Lenders usually treat 1099 contractors as self-employed and qualify them on tax returns, or on 1099s or bank statements with select programs.

Question 8

Will you check my credit to show me options?

Accepted Answer

No. You can talk through options without a credit check. Your credit is pulled when you apply, with your authorization.

Question 9

Do I need to upload documents to get started?

Accepted Answer

No. Answer a few questions and O.G. will follow up. If you move forward, you'll upload documents through a secure application, not a website form.

Self-employed mortgage loans in Texas: the short version