How to Get a Mortgage When You’re Self-Employed 

On Oct 29, 2025

If you’re self-employed or own a business, you may be wondering if it’s possible to get a mortgage. The short answer is yes, but the process will look different. You’ll need to provide documentation verifying your employment, and lenders will be analyzing your financial situation and the financial situation of your business to see how likely you are to pay back your loans.

The following guidance on navigating the home loan process is provided by Wells Fargo:

Typically, lenders consider an applicant self-employed if they meet any of the following:

• They own at least 25% of a business
• The ownership of a business is their major source of income
• They complete a 1099 tax form during tax filing instead of a W-2
• They’re an entrepreneur or sole proprietor whose income is filed under Schedule C of their tax returns
• They’re an independent contractor or service provider

You’ll also need to show verified employment records or proof of self-employment during the past two years. Lenders are ideally looking for your business to have been active for at least 12 consecutive months. They review the overall health of the business, looking at both net income and expenses.

When lenders review your application, they’re analyzing items like how stable your income is, if your business has strong finances, and what the future may look like for you and your business. Any of the following forms of documentation can help lenders show proof of your employee verification:

• Business licenses and/or DBA certificates
• Proof of correspondence with CPAs and/or clients
• Proof of business insurance
• Profit/loss statements or balance sheets reflecting your business’s performance
• Lenders’ requirements vary. Check with yours for what will be required for your situation.

What tax return requirements are needed? Personal tax returns under IRS Form 1040 include various schedules. Commonly used schedules are:

• Schedule B (Form 1040) – Interest and ordinary dividends
• Schedule C (Form 1040) – Profit or Loss from Business (Sole proprietorship)
• Schedule D (Form 1040) – Capital Gains and Losses
• Schedule E (Form 1040) – Supplemental Income and Loss
• Schedule F (Form 1040) – Profit or Loss from Farming

For business tax returns, a business may choose to report taxable income either on a calendar year or fiscal year basis. Commonly used forms include:

• IRS Form 1065 – U.S. Return of Partnership Income
• IRS Form 1120S – U.S. Income Tax Return for an S Corporation
• IRS Form 1120 – U.S. Corporation Income Tax Return

Also, keep expenses separate if you have multiple income sources. Additionally, keep personal accounts separate, so that lenders can more easily tell which assets are which.

“While self-employment makes obtaining a mortgage a bit more complex, your lender will walk you through the process, step by step,” says Rulon Washington, mortgage sustainability, Wells Fargo. (StatePoint)

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