How to Buy a Home When You’re Self-Employed or Have Non-Traditional Income
You’ve built a business, pursued your passion, or found success outside the 9-to-5 — and now you’re ready to buy a home. But if you’re self-employed, a freelancer, or earn income through gigs, commissions, or contract work, the path to homeownership might feel a little murky. The good news? Buying a home is absolutely possible — and at Tidewater Mortgage Services, we work with buyers just like you every day to help make it happen. All it takes is preparation, the right documentation, and a lender who understands how to tell the full story of your financial picture.
- Income Documentation Will Look Different — and That’s Okay
Traditional W-2 employees often just need to provide pay stubs and employment verification. For self-employed buyers, lenders need a bit more context. You’ll likely need to provide two years of personal and business tax returns, profit-and-loss statements, and possibly bank statements to verify income and cash flow.
Pro Tip: Keep your financial records organized and updated. The cleaner your documentation, the easier it is for a loan officer to make your case to underwriting.
- Don’t Let Tax Write-Offs Work Against You
One common pitfall for self-employed buyers is the number of deductions taken on their tax returns. While it’s smart to reduce your tax liability, aggressive write-offs can lower your “qualifying income” in the eyes of a lender.
What to do: Work with a mortgage professional early on who can review your tax returns and explore loan options that may be more flexible, like bank statement loans or asset-based financing. These programs look beyond traditional income calculations to paint a more accurate picture of your financial health.
- Your Credit, Debt, and Savings Still Matter — Maybe Even More
Even if your income is non-traditional, other factors can strengthen your mortgage application. A solid credit score, low debt-to-income ratio, and healthy savings can give lenders confidence and offset some of the perceived risk.
Focus on: Paying down credit cards, avoiding new large debts, and setting aside reserves. If your income is harder to document, everything else in your financial profile becomes even more important.
Being self-employed shouldn’t mean being shut out of homeownership. With the right guidance and a custom approach, you can qualify for a mortgage — and we’re here to help make it happen.
Reach out to Tidewater Mortgage Services today to schedule a consultation and explore your loan options. Let’s turn your hard work into the keys to your dream home!
