Self - Employed? Three Documents You'll Need To Apply For A Mortgage

While the document required may vary from lender to lender and from borrower to borrower depending on the loan type and loan scenario, there are certain documents that self-employed borrowers will need to establish income sources when getting a pre-approval for a mortgage. 

In addition, to any other documents requested by the lender to verify credit, income, assets and debt, a self-employed borrower may be asked to supply:

  1. Personal Federal Tax Returns: (2) years of tax returns is usually required by some underwriters may only require one depending on the loan qualifications. This information is used to verify personal income, and , deductions taken that might affect income. Income that is not reported on tax returns is not able to applied towards a home purchase. 

  2. IRS Schedule K-!: the K-1 indicates ownership percentage and the type of company that has been formed, i.e llc, partnership or corporation. In most cases, 2 years of K-1 schedules will be requested

  3. Business Federal Tax Return: (2) years of business tax returns are usually requested unless requirements to waive this requirement have been met. Business tax returns show the income of the business. In most cases, lenders want to see income that is steady or increasing but not decreasing.


This article is for illustrative purposes only. It is not an offer or commitment to lend money, and it is not an advertisement for a specific mortgage interest rate. Contact me to run numbers for your situation.