3 Mortgage Options for Self-Employed Homebuyers

By Gregg Tepper

I have been married to my wonderful wife Letha for 29 years. We have 3 children: Max, Alexander and Charlotte. I have been a licensed Realtor in the New Orleans area for 19 years and am the Operator of The Tepper Group with Keller Williams Realty in Mandeville. Our team services the entire New Orleans and Baton Rouge metro areas. Our team of partners has well over 40 years of experience. In 2024 we helped 132 families buy, sell and lease homes, land and commercial investments.

Buying a home when you’re self-employed can feel frustrating. You know you’re making enough income to afford the mortgage, but things fall apart once the lender sees your tax returns. I’ve talked to many clients who run successful businesses or work multiple 1099 jobs, yet they’re denied simply because their write-offs lower their reported income. If that sounds familiar, I want you to know there are real solutions available. You don’t have to keep renting or delay your plans just because your income doesn’t fit a traditional mold.

Conventional loans require clean paperwork. This option works well for those with two full years of tax returns showing stable, documented income. Lenders will also ask for bank statements and other proof of earnings. If your income is steady and you don’t write off too much, a conventional loan might be a strong fit. The challenge comes when you deduct business expenses that shrink your reported income on paper, even though your actual cash flow is healthy.

Non-QM loans look at your bank statements. If tax write-offs are making approval difficult, a non-qualified mortgage can help. Instead of focusing on your tax returns, this loan looks at your last 12 to 24 months of bank statements to verify your income. As long as your deposits are consistent and your cash flow is strong, this option gives you a more flexible path to qualify.

1099 loans are ideal for contractors and gig workers. If you work in the gig economy or receive 1099 income from multiple sources, this loan type could be your best route. It only requires one year of 1099s, and you may be eligible to borrow up to 90% of that income. This is especially useful if you’re just starting out or have only one solid year of freelance or contract work behind you.

If you’re self-employed and planning to buy a home, you don’t need to figure it out alone. Some options can get you approved whether you’re running a business, freelancing, or working on multiple contracts. If you want to discuss your situation and find out which path fits best, reach out anytime. Call or text (985) 789 8717 or email TGroup@kw.com. Let’s take the next step together.