Borrowers can face strict guidelines for income and documentation when trying to qualify for a self-employed mortgage. Many self-employed people don’t qualify for a traditional loan because they don’t have pay stubs or their tax returns don’t accurately reflect their income.
At Newfi, we understand entrepreneurship means variable income, multiple revenue streams, and business deductions. That’s why we offer Self-Employed Home Loans that help independent workers of all types get into their dream homes.
Newfi’s Simple Solutions for Self Employed Borrowers
Our mortgage program for self-employed people helps borrowers qualify for a purchase, refinance, or cash-out refinance without the traditional 2-years of tax returns. Instead, we’re able to prove your income and can qualify you based on how you earn your income. These unique mortgage solutions are designed for small business owners, contract workers, or anyone working a side hustle.
Benefits for a Self-Employed Loan with Newfi:
Flexible Income Requirements
Because every self-employed borrower handles their finances differently, we offer a variety of flexible income requirements.
12- or 24- Months of Personal or Business Bank Statements
The most common way to document income among self-employed borrowers is by using bank statements. At Newfi we can use the last 1 or 2 years of your bank statements and analyze them for qualified deposits. These can be your personal or business bank statements. By using bank-statements we can calculate your annual income and not rely on your tax return to show how much income you generated over the time period.
1099 or Contract Work
When you work for Uber or are a contract worker you may receive a 1099 to document your income. At Newfi you can use your 1099 documentation to prove the income of your business. We take your 1 or 2 years of 1099 income documentation and apply a 10% reduction for business expenses, then qualify you based on the remaining 90% of your income.
CPA Letter to Document Income
Self-employed borrowers who own 100% of their businesses and have filed a tax return with a licensed CPA or equivalent can qualify based on their gross receipts. Reach out to your loan officer to learn more about this option.
Combined Income for Multiple Sources
Do you have multiple jobs or forms of income in your household? Combine bank statements, 1099’s and W-2’s from multiple jobs both individually and within a household to qualify. That way you can use as much income as possible to maximize what you can qualify for.
Documentation Based on Your Unique Situation
We ask for the documents you can provide us! This means that if your tax returns don’t document your income accurately, then we will skip asking for tax returns and instead request your business/personal bank statements or other types of income documentation. You’ll also need to provide your self-employment history and, if you co-own a business, how much of that business you own.
Qualify With Less Than 2 Years in Business
While we usually ask for 2 years of self-employment history, we can make “common sense” adjustments. If you have relevant work experience in a similar field, we may be flexible.
Because underwriting is done in-house, we can tailor decisions to real-life business situations rather than strict cookie-cutter rules.
How Non-QM & Self-Employed Loans Give You More Options
Traditional qualifying rules often shut out self-employed borrowers, but Non-QM mortgages have emerged to bridge that gap. Non-QM and self-employed mortgage programs allow:
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Qualification using alternative documentation rather than tax returns
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Flexibility in how income is calculated (bank statements, asset-based, etc.)
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Options for 40-year mortgage terms or even interest-only periods, which reduce monthly payments when income fluctuates
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Integration with DSCR loans for real estate investors, allowing rental income to contribute to qualification rather than personal income
Because Newfi’s underwriting is internal, we can combine these strategies to make self-employed borrowing more accessible without compromising stability.
Tips to Strengthen Your Self-Employed Mortgage Application
- Maintain clear separation between business and personal finances (dedicated accounts help).
- Keep reserves to show you can handle occasional lean months.
- Limit aggressive tax deductions that weaken your “qualifying” income.
- Prepare year-to-date profit & loss statements to show business momentum.
- Engage a CPA early to help document and verify your income properly.
Financing Your Dream Home With Newfi
If you’re self-employed and want to qualify for a mortgage that aligns with your business reality, Newfi’s customized home loan options can help. We look beyond tax returns to see your real earning potential.
Get a quote or talk to one of our senior loan advisors today. Let’s find a path that works for your business and home goals.