Yes, self-employed individuals can absolutely qualify for mortgages. Lenders will review your financial documentation, such as tax returns, profit and loss statements, and bank statements, to assess your ability to repay the loan.

Typically, you’ll need 1-2 years of personal and business tax returns, bank statements, a profit and loss statement, and documentation proving consistent self-employment. Some lenders may also ask for a business license or CPA statements.

Lenders often average your income over the last 1-2 years, using your tax returns as the basis. Some deductions, like depreciation, may be added back to reflect your true income, but keep in mind that claiming too many deductions can reduce your qualifying income.

Generally, lenders prefer to see at least two years of consistent self-employment. However, there are exceptions—some programs may allow for less time if you can demonstrate stability through previous employment in the same industry or other income sources.

Self-employed individuals often face fluctuating income, and lenders may average your income over two years or request additional documentation. You can smooth out the highs and lows by setting up a steady, reliable income stream, which we can help you with.

Yes, deductions that lower your taxable income can impact your mortgage eligibility. Lenders base your qualifying income on your net income after expenses, so excessive deductions might limit the amount you can borrow.

Self-employed borrowers can access conventional loans, FHA, VA, or even special programs like bank statement loans, which consider deposits instead of tax returns to determine qualifying income.

Keep your debt-to-income ratio low, maintain good credit, and ensure your business finances are in order. You can also reduce the number of deductions on your taxes if you’re planning to apply for a mortgage soon, which will boost your qualifying income.