Self-Employed Mortgage Guide

Smart Financing Strategies for Entrepreneurs, 1099 Earners & LLC Owners

This guide breaks down how lenders evaluate income, what documentation you’ll need, and which loan programs work best for business owners, freelancers, and 1099 earners.

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Self-Employed & Investors

A Clear, Honest Guide to Getting a Mortgage When You Are Self-Employed

A 30 year fixed mortgage is a type of home loan that has a fixed interest rate and monthly payment for the entire 30 year term of the loan. This means that your monthly payment will remain the same throughout the life of the loan, regardless of any changes to interest rates in the market.

This stability is a significant advantage of 30-year fixed mortgages, as it allows you to budget and plan for your payments over the long term. It also makes it easier to qualify for a loan, as the monthly payments are typically lower than those of shorter-term loans like a 15 year fixed mortgage.

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How Lenders View Self-Employed Income

Self-employed income is reviewed differently than W-2 income.

Lenders must verify stability, consistency, and the likelihood that your business or work will continue. This includes reviewing business structure, income trends, expense deductions, deposits, and documents that support your financial activity.

Many borrowers qualify more easily than they expect once the right loan program is used.

Common Loan Options for Self-Employed Borrowers

There are many benefits to choosing a 30-year fixed mortgage for your North Carolina home purchase. Here are just a few:

Bank Statement Loans

These loans review deposits into personal or business accounts. Instead of relying on tax returns, lenders use 12 to 24 months of bank statements to calculate qualifying income.

1099-Only Loans

Ideal for independent contractors. These programs qualify income using your 1099 forms and a simple year-to-date income review.

Asset Utilization Loans

Allows borrowers to convert assets such as savings or investments into qualifying income.

Profit and Loss Based Loans

Some programs allow a professionally prepared P&L to be used as the primary income document.

Non-QM Programs

Non-QM mortgages create additional flexibility for borrowers who do not meet standard guidelines. These are popular with entrepreneurs who have strong credit and cash flow but complex returns.

Documentation You May Need

Requirements depend on the loan type, but many borrowers are asked for:

Personal and business tax returns
12 to 24 months of bank statements
Year-to-date profit and loss statement
Business license or proof of activity
1099 forms (if applicable)
Asset statements

Scott helps each borrower prepare only the documents required for their specific loan program.

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How to Strengthen Your Approval

Small changes can create a significant difference in your approval amount:

Keep personal and business deposits consistent

Limit large cash deposits that cannot be documented

Avoid major new expenses during the pre-approval period

Maintain updated bookkeeping

Improve credit utilization where possible

Scott walks each borrower through the steps that will make the largest impact on qualification.

Self-Employed Mortgage Timeline

Most self-employed files follow a similar process:

Even with additional documentation, well-prepared files move quickly.

Who This Guide Is For

This page supports the thousands of borrowers whose income does not fit within a simple W-2 box:

Entrepreneurs
Business owners
Freelancers
Independent contractors
Gig workers
Commission-based earners
Real estate investors

If your income comes from multiple streams or fluctuates throughout the year, there is a loan program that can work for you.

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Get Personal Guidance for Your Scenario

Every self-employed borrower is different.

Scott helps you understand which loan programs fit your income, how much you can qualify for, and what steps will strengthen your approval. Start your self-employed mortgage review today.

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Self-Employed Jumbo & Luxury Investors About Reviews Contact

Scott Hastings, NMLS #926762
Arbor Financial, NMLS #236669

Licensed in NC, SC, FL, GA, VA, AR, IN, NH, MD, MT, NV

Equal Housing Lender. All loans subject to credit and property approval.