Being self-employed comes with a lot of benefits: Being at home, flexible hours, maybe even working in your PJs.
But when it is time to apply for a mortgage, you might wonder whether you can get a mortgage and be your own boss. The good news? It is absolutely possible to get a mortgage while you’re self-employed. You just might need to provide more information than someone who works for an employer.
While other applicants may be able to provide only one year of income tax returns, self-employed mortgage applicants may need to provide two or more years. You may also need to provide a profit and loss statement, or 1099 form.
Bankrate points out that providing all this information does not mean it will be more difficult for you to get a loan. Your lender wants more information so that they can see that your self-employed income is stable and predictable. The Mortgage Reports adds that “windfall” income – large payments that are outside your normal pay – may also not be counted, unless they are reoccurring.