Can I get a mortgage with only 1 year of self-employment?
The full answer
The two-year rule isn't a law — it's a guideline most conventional (Fannie Mae and Freddie Mac) lenders follow to confirm your income is stable. Fannie Mae's own guidance allows a self-employment history as short as 12 months in certain cases, typically when you have a track record of employment in the same line of work or strong compensating factors like a large down payment and reserves.
Outside conventional financing, non-QM lenders are more flexible. Bank statement loans and 1099 income programs frequently qualify borrowers with a single year of self-employment, because they read recent deposits or 1099 totals rather than insisting on a two-year tax-return average.
If you can wait until you have two full years of documented self-employment, you'll generally have more options and better pricing. If you can't, lead with prior related experience and a non-QM program.
Related questions
- How many years do you need to be self-employed to get a mortgage?
- Can I get a mortgage if I just started my business?
- Can I get a mortgage without tax returns?
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.