Self-Employed Mortgages in Houston
Home loans designed for business owners, freelancers, and entrepreneurs.
Bank statements or 1099 income accepted.
Bank Statements
Qualify using 12-24 months of bank deposits
1099 Accepted
Traditional loans accepting 1099 contractor income
Higher Income
Qualify based on cash flow, not tax write-offs
Mortgages for Business Owners
Self-employed mortgages are designed for business owners, freelancers, and entrepreneurs who may not have traditional W-2 income. Whether you use bank statements, profit & loss statements, or 1099 tax returns, we have flexible loan programs that recognize your unique income structure. As a Houston business owner, you work hard to minimize your tax burden through legitimate write-offs - our bank statement loans let you qualify based on actual cash flow, not reduced taxable income.
Houston's entrepreneurial economy includes thousands of self-employed professionals - from oil and gas consultants to real estate agents, medical professionals with private practices, and tech freelancers. Traditional mortgage underwriting often penalizes business owners for smart tax planning. Our self-employed loan programs solve this problem by offering alternative documentation methods that reflect your true earning power.
Self-Employed Loan Requirements
Credit Score
620-640+ depending on loan type
Down Payment
3-5% traditional | 10-20% bank statement/P&L
Business History
2 years self-employment (1 year for some)
Documentation
Bank statements, P&L, or traditional tax returns
Debt-to-Income
Up to 45% DTI (varies by program)
Income Verification
Business or personal bank deposits analyzed
Self-Employed Loan Options
Bank Statement Loans
Use 12-24 months of personal or business bank statements. Lenders analyze deposits to calculate income (typically 50-75% of average deposits).
P&L Statement Loans
Qualify with CPA-prepared profit & loss statement plus 12 months of bank statements. No full tax returns required.
Traditional 1099 Loans
Standard conforming loans (FHA, conventional, VA) accepting 1099 income with 2 years of tax returns and business documentation.
Stated Income (Asset-Based)
Qualify based on significant liquid assets rather than traditional income documentation. For high net worth self-employed individuals.
Benefits of Self-Employed Loans
Frequently Asked Questions
How do bank statement loans work for self-employed borrowers?
Bank statement loans analyze 12-24 months of your business or personal bank statements to calculate qualifying income. Lenders typically use 50-75% of average monthly deposits as your qualifying income (percentage varies by business type). This allows business owners who write off significant expenses to qualify for higher loan amounts than they could using tax returns.
What credit score do I need as a self-employed borrower?
Traditional loans accepting 1099 income require 620+ credit (580 for FHA). Bank statement loans typically need 640-680 minimum. P&L statement loans usually require 660+. Higher credit scores generally result in more favorable rates regardless of the program.
Can I qualify with only 1 year of self-employment?
Most programs require 2 years of self-employment history. However, some lenders offer 1-year self-employment programs if you have prior experience in the same industry (e.g., worked as a W-2 employee in the field before starting your business). We can review your specific situation to determine eligibility.
How much down payment do I need as a self-employed borrower?
Traditional FHA loans accept 3.5% down with 1099 income. Conventional loans allow 3-5% down for qualified self-employed buyers. Bank statement and P&L loans typically require 10-20% down. The down payment requirement varies based on credit score, loan amount, and chosen program.
Will my business write-offs hurt my mortgage qualification?
With traditional loans (using tax returns), yes - write-offs reduce your qualifying income. This is exactly why bank statement loans exist! Bank statement loans look at your gross business deposits instead of net taxable income, allowing you to qualify based on actual cash flow rather than what you show on taxes after deductions.
Ready to Get Pre-Approved?
Our self-employed loan specialists understand business owner finances and will find the right program for you. Bank statements, P&L, or 1099 - we've got you covered.
Quick Facts: Bank statements accepted • 1099 income welcome • P&L options • 620+ credit • 2 years self-employment • Competitive rates • Licensed in Texas • NMLS #2701989