Mortgage questions, answered
Direct, sourced answers to the questions self-employed, 1099, gig and newcomer borrowers actually ask — each one a short answer up top, then the full explanation. Sourced to the CFPB, HUD, Fannie Mae and the IRS.
Self-employment
Can I get a mortgage with only 1 year of self-employment?
Sometimes. Conventional loans generally require a two-year self-employment history, but some lenders accept one year if you have prior W-2 experien…
How many years do you need to be self-employed to get a mortgage?
Typically two years. Conventional, FHA, VA and USDA loans generally want a two-year self-employment history, though one year can work with prior ex…
Can I get a mortgage as a gig worker (Uber, DoorDash, freelance)?
Yes. Gig and platform workers are self-employed and qualify through the same paths as other self-employed borrowers — conventional with two years o…
Can I get a mortgage if I just started my business?
It's hard in the first year. Most loans want a two-year self-employment history, and a brand-new business usually lacks the tax returns or deposit…
Can I get a mortgage if my self-employed income is declining?
Possibly, but the math changes. With a declining trend, lenders stop averaging the two years and qualify you on the lower, most recent figure — and…
Should I write off less — or amend my tax returns — to qualify for a mortgage?
Writing off less on future returns genuinely raises your qualifying income — at the cost of more tax. Amending past returns mid-application usually…
Will a business loss on my tax return hurt my mortgage application?
Usually, yes. A loss from a business you still own is subtracted from your other qualifying income — even a salaried W-2 borrower loses income to a…
Income & documentation
Do mortgage lenders use gross or net income for self-employed borrowers?
Net income. On a conventional loan, lenders qualify self-employed borrowers on the net profit from your tax returns — gross revenue minus business…
Do tax write-offs hurt your mortgage approval?
Yes, on conventional loans. Every business deduction lowers the net income lenders use to qualify you, so aggressive write-offs that cut your tax b…
Can I use 1099 income to qualify for a mortgage?
Yes. 1099 contractors qualify by reporting that income on Schedule C and being treated as self-employed, usually with a two-year average. Some lend…
Can I get a mortgage without tax returns?
Yes, through non-QM loans. Bank statement loans qualify you on 12–24 months of deposits, P&L-only loans on a CPA-prepared profit-and-loss statement…
How do lenders calculate self-employed income?
On a conventional loan, lenders start with your net profit from two years of tax returns, add back non-cash expenses (depreciation, depletion, amor…
Can I get a mortgage with both W-2 and 1099 income?
Yes. Your W-2 income counts on normal terms, and lenders can add 1099 income on top once it has its own history — generally two years, sometimes on…
How do mortgage lenders calculate K-1 income from a partnership or S-corp?
If you own 25% or more, lenders treat you as self-employed: they use the ordinary income on your K-1 (plus guaranteed payments and any W-2 salary f…
How do mortgage lenders count rental income?
Rentals already on your tax returns qualify from Schedule E cash flow, with paper expenses like depreciation added back. For a property you're buyi…
Newcomer & visa
Can I buy a house with an ITIN instead of a Social Security number?
Yes. While conventional, FHA, VA and USDA loans require a Social Security number, ITIN mortgage programs from portfolio lenders, community banks, c…
Can I get a mortgage on an H-1B visa?
Yes — via conventional loans. With a valid Social Security number and work authorization, H-1B visa holders qualify on standard terms, including 3–…
Can I get a mortgage with foreign income?
Sometimes. U.S. lenders generally count foreign income only if it continues after you move and can be verified — often needing translated documents…
Credit & down payment
What credit score do self-employed borrowers need for a mortgage?
The same as anyone else by program: roughly 580+ for FHA with 3.5% down (500–579 with 10% down), and 620+ for conventional. Non-QM bank statement l…
How much down payment do you need for a self-employed mortgage?
It depends on the loan, not on being self-employed. Conventional loans start at 3–5% down and FHA at 3.5%, with the same minimums for self-employed…
Can a co-signer help me qualify if I'm self-employed?
Yes, within limits. Conventional and FHA loans allow a non-occupant co-borrower whose income and credit are blended with yours, which can rescue a…
Loan types
Do I need two years in business for a bank statement loan?
Usually two years, but not always. Most bank statement lenders want a two-year self-employment history and 12–24 months of statements, yet some acc…
What is an expense factor on a bank statement loan?
The expense factor is the percentage of your bank deposits a lender treats as business expenses when calculating qualifying income. If your deposit…
Can my LLC buy the house I'm going to live in?
Generally no. Conventional, FHA, VA and USDA loans must close in the name of a person, not an LLC. Mortgages that do close in an LLC — like DSCR lo…
Do bank statement loans use business or personal bank statements?
Either, and the choice changes your qualifying income. Personal statements (with business income deposited to them) are often credited at or near 1…
Can I live in a home I bought with a DSCR loan?
No. DSCR loans are business-purpose loans made on the premise that the property is a rental generating the income that qualifies the loan. Moving i…
Go deeper
How we source this
- CFPB — Consumer Financial Protection Bureau
- Fannie Mae Selling Guide
- IRS — Self-Employed Individuals Tax Center
Every answer above traces its rules back to these primary sources.