🔔 New: the 1099 & freelance mortgage guide is live — qualify without W-2s.Read it →
Mortgage Merlin
30-YR CONV6.41%▼0.00
FHA6.15%▼0.00
BANK-STMT7.25%▼0.00
DSCR7.60%▼0.00
JUMBO6.70%▼0.00
15-YR5.62%▼0.00
ITIN7.90%▼0.00
30-YR CONV6.41%▼0.00
FHA6.15%▼0.00
BANK-STMT7.25%▼0.00
DSCR7.60%▼0.00
JUMBO6.70%▼0.00
15-YR5.62%▼0.00
ITIN7.90%▼0.00
Self-employment · Q&A

Can I get a mortgage if I just started my business?

Short answer: 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 history to qualify. Options: buy before leaving W-2 work, wait until you have history, or use a non-QM lender that accepts one year plus prior experience.

The full answer

A business under a year old is the toughest self-employed scenario, because there's not yet enough income history for any standard method — two years of returns for conventional, or even 12 months of deposits for many bank statement loans.

The most reliable move, if a purchase is near, is to buy while you still have W-2 income, which qualifies immediately. If you've already gone independent, the practical choices are to wait until you reach a 12–24 month history, or find a non-QM lender that accepts a one-year history when you have prior W-2 experience in the same field and strong compensating factors (credit, reserves, larger down payment).

In the meantime, set up clean books and a dedicated business account from day one — it makes you financeable far sooner once you reach the history threshold.

Sources

Educational information only — not financial advice, and not a quote, pre-approval, or offer of credit. Program rules and ranges are illustrative and vary by lender. Mortgage Merlin is a publisher, not a lender or broker.

Keep exploring