How much down payment do you need for a self-employed mortgage?
The full answer
If you qualify for a conventional or FHA loan with your tax returns, your self-employment doesn't raise the down payment — you get the same 3–5% (conventional) or 3.5% (FHA) minimums as any borrower. VA and USDA can be 0% down if you're otherwise eligible.
The larger down payments show up on non-QM loans, which many self-employed borrowers use to avoid the write-off problem. Bank statement, 1099, and P&L-only programs generally want 10–20% down (sometimes more for lower credit or investment property), because the lender keeps the loan rather than selling it to Fannie or Freddie.
A bigger down payment also acts as a compensating factor: it can offset a shorter business history, a thinner credit file, or more variable income, and it improves your pricing on non-QM products.
Related questions
- What credit score do self-employed borrowers need for a mortgage?
- Can I get a mortgage without tax returns?
- Do I need two years in business for a bank statement loan?
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.