💼 Self-Employed? Here’s How to Get Approved for a Mortgage

Being your own boss comes with a lot of perks—but when it’s time to apply for a mortgage, self-employed borrowers often face a few extra hurdles. The good news? Getting approved is absolutely possible—you just need to be prepared.

At Verified Mortgage, we specialize in helping entrepreneurs, freelancers, and independent contractors navigate the mortgage process with confidence. Here’s what you need to know if you're self-employed and ready to buy a home in 2025.

🧾 1. Show Solid Income Documentation

Unlike W-2 employees, lenders can’t just glance at your pay stub. Instead, they’ll want to see:

• At least 2 years of tax returns (personal and business, if applicable)

• Profit and loss statements or year-to-date income summaries

• Bank statements to verify cash flow

💡 Pro tip: If your income fluctuates, lenders usually average your past 2 years of income—so consistency helps.

📉 2. Write Offs Can Work Against You

Yes, writing off expenses lowers your tax bill—but it also lowers your reported income. That can make it harder to qualify for the loan amount you want.

If you're planning to buy soon, consider limiting your write-offs or working with an accountant who understands mortgage guidelines.

💳 3. Keep Your Credit Clean

Your credit score plays a major role in your mortgage approval—self-employed or not.

• Pay all bills on time

• Avoid opening new accounts right before applying

• Keep your credit utilization low (under 30% of your limit)

A score of 620+ is typically the minimum for conventional loans, but higher scores open the door to better rates.

💼 4. Choose the Right Loan Program

Some loan types are more flexible for self-employed borrowers, including:

• Bank Statement Loans – Use 12–24 months of personal or business bank statements instead of tax returns

• FHA Loans – More lenient on credit score and debt-to-income ratio

• Non-QM Loans – Designed for borrowers who don’t fit traditional guidelines

We’ll help you compare options and find what fits your unique situation.

✅ 5. Get Pre-Approved Before You Shop

The pre-approval process helps you understand how much home you can afford—and shows sellers you’re serious. For self-employed buyers, getting pre-approved early also gives time to address any documentation issues.

Let’s Make It Simple!

You’ve built your own business—now let us help you build your path to homeownership.

At Verified Mortgage, we make the process smooth and stress-free for self-employed borrowers across Indiana. Whether you're a photographer, freelancer, contractor, or small business owner—we've got you covered.