It makes sense: If you don't have stable employment, you'll have a harder time paying off your mortgage. Some of my self-employed friends have told me that lenders might make you jump through more hoops and provide extensive documentation, statements from CPAs that had to be on the firm's letterhead — that sort of thing.
It turned out to be fairly simple process. When I talked to Mike Carpenter, a loan officer and founder of, he said the main difference between getting pre-approved for a mortgage when you're self-employed and when you have a traditional job is how you go about showing proof of income. Whereas 9-to-5ers might be asked to provide paycheck stubs, freelancers are asked to submit tax returns.
The most recent two months' statements or most recent quarter's statements of all your assets. This includes checking and savings accounts, 401 accounts, retirement funds in other accounts, stocks, and other cash assets.There might be exceptions to the requirements. While two years' of tax returns is the standard, in some cases you might only need one year of income tax documents.
Another exception: If you are able to provide the last two years of your individual tax returns, you might not need to also provide two years worth of business tax returns. That's if you're using your own funds for the down payment and closing costs, and if you satisfy the reserve requirements; if you've been self-employed for at least five years; and your individual tax returns show an increase in income over the last two years.
See being a freelancer isn’t so bad!! See!! WITNESS!!
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