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Who Is A Self-Employed Home Buyer?


A self-employed home buyer is a business owner, 1099 employee, or an independent contractor.
Self-employed individuals have numerous mortgage options available, including conventional loans, government-backed loans, and Non-QM loans designed specifically for self-employed home buyers.

Self-employed: home buyers often have a hard time obtaining home loans due to writing all their income off as expenses on their taxes to pay less taxes to the federal government. Self-employed home buyers are pre-approved using their net income not their gross income like a W2 employee. When self-employed home buyers show very little income on their taxes it hurts them when trying to get qualified to purchase a home because there is no income to prove they can afford the monthly mortgage payment.
Self Employed
Self Imployed two
As a self-employed home buyer if you want to qualify for homeownership grants, down payment assistance programs, and the lowest down payment programs then you need to show net income on your taxes.

If you do not want to show net income on your taxes, there are various Non-QM loans you can qualify for such as bank statement loans, profit & loss loans, and DSCR loans. These loan programs offer alternative income verification methods for borrowers who don't meet traditional mortgage requirements but can require a higher down payment.

1. Bank statement loans use bank statements (12-24 months) instead of tax returns
2. Profit and Loss loans rely on business profit and loss statements
3. DSCR loans are available for non-owner-occupied properties

***As a self-employed home buyer there are certain write-offs you can take on your taxes that can be added back as income to help you qualify for traditional home loans***

Click the link below to purchase Top-Tax Write Offs For Self-Employed Home Buyers Worksheet

Top Tax Write Offs
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