💼 Start with your business
Tell us what you do, how long you have operated, your ownership share, and how you receive income. Sole proprietors, LLC owners, partners, and corporation owners may need different records.
Self-employed borrowers
Your income has its own story. Let’s understand the business behind it.
Running a business can make your income look different from a standard pay stub. A mortgage review may need a closer look at your business history, earnings, expenses, ownership, and available funds. Start with a conversation about the documentation that fits your situation.
📑 Explore standard documentation
A conventional or government-backed loan review may use personal and business tax returns, schedules, income records, and other documents requested by the lender. Business revenue and qualifying personal income are not the same thing.
🏦 Discuss bank statement scenarios
Where available, an alternative documentation program may evaluate eligible deposits and business expenses. A lender decides which deposits count, how expenses are treated, and what additional information is needed.
📊 Put your numbers in context
Be ready to discuss income trends, current business performance, debt obligations, cash reserves, and the funds you intend to use at closing. A profit-and-loss statement or other current records may be requested.
🏘️ Separate your home and investment goals
A primary-home mortgage and a rental-property scenario can follow different rules. Ask about occupancy, property cash flow, income documentation, and the loan structures available for each purpose.
⚖️ Compare the full tradeoff
Compare the rate, APR, payment, fees, down payment, reserves, and loan structure. Alternative documentation does not mean automatic approval or identical terms across lenders.
🗂️ What to have ready
- Business name, structure, ownership, and operating history.
- Tax returns and schedules, if requested for the selected loan.
- Personal or business bank statements requested by the lender.
- Current financial records, such as a profit-and-loss statement, when needed.
- Details of the property, your available funds, and existing obligations.
The lender will provide a tailored document list. Do not change tax reporting or move business funds based on an online example; discuss your mortgage scenario with your loan team and tax questions with your tax professional.
Program availability and approval vary. Fannie Mae: self-employed borrower documentation ↗