Can I get a Mortgage if I am self-Employed?

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

Are you self-employed and wondering if you can qualify for a mortgage? The good news is that securing a mortgage as a self-employed individual is absolutely possible! While the process may require more documentation than a traditional W-2 borrower, with the right preparation, homeownership can possibly be well within reach.

Key Differences for Self-Employed Borrowers

For self-employed borrowers, lenders will look at your income, assets, credit, and the property—just like they do for salaried employees. However, the way your income is documented is a bit different. Instead of providing pay stubs, you’ll need to show detailed financial records, including two years of personal and business tax returns, bank statements, and potentially a profit and loss statement.

Common Misconceptions

A common misconception is that being self-employed makes it impossible to qualify for a loan. While maximizing tax write-offs is important for reducing your tax bill, too many deductions could lower your reported income and make it harder to qualify. Fortunately, some deductions like depreciation, depletion and amortization can possibly be added back in for mortgage purposes.  There are many nuances for the self employed borrower, however, being self employed alone does not preclude you from getting a mortgage.

Boost Your Chances of Approval

To improve your chances of getting approved for a mortgage, maintain organized financial records and work with an experienced lender. Make sure you can provide all of the necessary documentation, as it will certainly help. A knowledgeable mortgage professional can help you navigate the process and ensure all qualifying deductions are considered.

Ready to Apply?

At Morgan Financial, we can certainly assist qualified self-employed borrowers secure mortgages. Contact us today to see how we can help you achieve your homeownership goals!

Reach out now to get started on securing the home of your dreams or refinancing to save more on your current mortgage.