Being your own boss has plenty of advantages, but getting a mortgage is not always one of them. Lenders want proof of stable income, and tax returns full of business deductions can make your income look much smaller than it really is. The good news is that the best mortgage lenders for self-employed borrowers offer flexible ways to qualify, from traditional loans based on tax returns to bank statement loans that look at your actual deposits. In this guide, you’ll find six lenders compared side by side, the loan options available to business owners and freelancers, and practical steps to prepare a strong application.
Why Getting a Mortgage Is Harder When You’re Self-Employed
When you work for an employer, a lender can verify your income with pay stubs and W-2 forms. When you’re self-employed, the lender usually looks at your tax returns, and that creates two common problems.
Deductions lower your qualifying income. Lenders generally use your net income after business expenses, not your gross revenue. For example, if your business brings in $150,000 a year and you deduct $60,000 in expenses, a lender will usually treat your income as $90,000. Those deductions save you money on taxes, but they also reduce how much house you can afford on paper.
Income can vary from year to year. Lenders like stability. If your income dropped recently, or if you’ve been self-employed for less than two years, many lenders will consider your application riskier.
That’s why choosing the right lender matters so much. Some lenders only offer standard loans with strict documentation, while others specialize in alternative ways to verify income.
Mortgage Options for Self-Employed Borrowers
Before comparing the best mortgage lenders for self-employed borrowers, it helps to understand the main loan types available.
Conventional, FHA and VA Loans
If your tax returns show enough income, a traditional loan is usually your cheapest option because rates and fees are lower. Under the Fannie Mae Selling Guide, lenders generally want a two-year history of self-employment. A shorter history can be accepted if your most recent tax returns show a full 12 months of income from your current business and you previously earned the same or more in the same field.
In some cases, lenders can accept just one year of tax returns, but only if your business has existed for at least five years and you’ve owned at least 25% of it during that time.
Bank Statement Loans
Bank statement loans let you qualify using 12 or 24 months of personal or business bank statements instead of tax returns. The lender adds up your deposits and applies an expense factor (often around 50% for business accounts, sometimes lower if a CPA verifies your expenses) to estimate your income.
These are non-qualified mortgages, which means they don’t follow the standard federal rules for a qualified mortgage. In exchange for that flexibility, expect higher interest rates, larger down payments (often 10% or more) and higher credit score requirements than with a conventional loan.
1099 and Profit and Loss (P&L) Loans
Freelancers and independent contractors who receive 1099 forms can sometimes qualify using those forms instead of full tax returns. P&L loans use a profit and loss statement, usually prepared or verified by a CPA or tax preparer.
DSCR Loans for Investors
If you’re buying a rental property, a debt service coverage ratio (DSCR) loan qualifies you based on the property’s expected rental income rather than your personal income.
The Best Mortgage Lenders for Self-Employed Borrowers in 2026
The lenders below were chosen for the range of options they offer self-employed borrowers, their documentation flexibility and their availability. Each one is a good fit for a different situation, so read through the “best for” label to find the one that matches yours.
1. Guild Mortgage: Best Overall for Loan Variety
Guild Mortgage offers one of the widest product lineups for self-employed borrowers. Along with conventional, FHA, VA and USDA loans, it offers non-QM bank statement loans, DSCR loans and interest-only loans. It can also use alternative credit data for government-backed loans if your credit history is thin.
Best for: borrowers who aren’t sure whether they’ll qualify with tax returns or need a bank statement loan, since one lender can handle both.
Minimum down payment: 0% for VA, USDA and certain programs; 1% for some conventional loans; 3.5% for FHA.
2. CrossCountry Mortgage: Best for Fast Underwriting
CrossCountry Mortgage offers a bank statement program that accepts 12 or 24 months of statements and allows a debt-to-income ratio up to 50%. Its FastTrack review can speed up underwriting, and approved borrowers may close in about 10 days. It is licensed in all 50 states and Washington, D.C.
Best for: self-employed buyers in a competitive market who need a quick closing.
Minimum credit score: as low as 500 for certain non-traditional mortgages.
Minimum down payment: 3% for conventional, 3.5% for FHA, 0% for VA or USDA.
3. New American Funding: Best for Borrowers Who Qualify With Tax Returns
New American Funding focuses on traditional loans with flexible credit requirements and a streamlined application. Its NAF Cash program can help you make an all-cash offer, which can make a difference when sellers have several bids.
Best for: self-employed borrowers with two or more years of solid tax returns who want competitive rates on a conventional or government-backed loan.
Minimum down payment: 3% for conventional, 3.5% for FHA, 0% for VA or USDA.
4. Angel Oak: Best for Home Equity Options
Angel Oak specializes in non-QM lending, including bank statement, 1099, P&L, DSCR and ITIN loans. It also stands out for offering a bank statement HELOC, a rare option for self-employed homeowners who want to tap their equity. Angel Oak works mainly through mortgage brokers and isn’t available in Alaska, Connecticut, New York or Vermont.
Best for: self-employed homeowners who want a HELOC or second mortgage without providing tax returns.
Minimum credit score: 640 for bank statement, 1099 and P&L loans.
Minimum down payment: 10% for bank statement and 1099 loans; 20% for P&L loans.
5. First National Bank of America: Best for High Debt-to-Income Ratios
First National Bank of America focuses entirely on non-traditional loans, including bank statement, 1099, P&L and ITIN loans. It allows debt-to-income ratios up to 60%, doesn’t require cash reserves on certain loans and accepts gift funds for the down payment. It doesn’t offer conventional or government-backed loans.
Best for: business owners with significant existing debt who can’t qualify elsewhere.
Minimum down payment: 15%.
6. A&D Mortgage: Best for Non-QM Variety
A&D Mortgage (also written AD Mortgage) offers both traditional loans and a broad set of non-QM programs, including 12- and 24-month bank statement loans, P&L, 1099 and asset utilization loans. It’s a wholesale lender, so you’ll need to apply through a mortgage broker, and it isn’t available in Alaska or Hawaii.
Best for: self-employed borrowers working with a broker who want many non-QM options in one place.
Minimum credit score: 620 for conventional loans; 580 for FHA and VA; roughly 620 to 660 for non-QM loans.
Minimum down payment: 3% for conventional, 3.5% for FHA, 0% for VA, and 10% to 25% for non-QM loans.
Comparison Table
Here’s a quick summary of the best mortgage lenders for self-employed borrowers covered in this guide.
| Lender | Best for | Min. credit score | Min. down payment | Self-employed options |
|---|---|---|---|---|
| Guild Mortgage | Loan variety | Not disclosed | 0% (VA/USDA), 1% conventional | Conventional, FHA, bank statement, DSCR |
| CrossCountry Mortgage | Fast underwriting | 500 (some products) | 3% conventional | 12/24-month bank statement, DTI up to 50% |
| New American Funding | Tax-return borrowers | Flexible | 3% conventional | Conventional, FHA, VA, USDA |
| Angel Oak | Home equity | 640 | 10% | Bank statement, 1099, P&L, bank statement HELOC |
| First National Bank of America | High DTI | Not disclosed | 15% | Bank statement, 1099, P&L, DTI up to 60% |
| A&D Mortgage | Non-QM variety | 580–660 | 3% conventional | Bank statement, 1099, P&L, asset utilization |
Lender requirements change often, so confirm current terms directly with each lender before applying.
How to Choose Among the Best Mortgage Lenders for Self-Employed Borrowers
Not all of the best mortgage lenders for self-employed borrowers will be right for you. Use these steps to narrow down your choice:
- Check whether your tax returns show enough income. Use your net income from the last two years and see how much house you can afford. If the numbers work, start with a conventional or FHA loan, since rates will be lower.
- If they don’t, look at bank statement or 1099 loans. These cost more, but they can reflect your real cash flow.
- Compare at least three offers. Rates and fees on non-QM loans vary widely between lenders. Compare the APR, not just the interest rate.
- Decide between a direct lender and a broker. Some non-QM lenders only work through brokers. A good broker can shop several lenders for you.
- Confirm state availability. Several non-QM lenders don’t operate in every state.
Documents You’ll Need
Whichever of the best mortgage lenders for self-employed borrowers you choose, preparing your paperwork early will speed up the process. Depending on the loan type, you may need:
- Personal and business federal tax returns for the last one or two years
- 12 or 24 months of personal or business bank statements
- A year-to-date profit and loss statement
- 1099 forms from your clients
- A business license, articles of incorporation or a letter from your CPA confirming your business
- Proof of assets for your down payment, closing costs and reserves
- A government-issued photo ID
Tips to Improve Your Approval Odds
Even the best mortgage lenders for self-employed borrowers will review your finances closely, so these steps can help:
- Keep business and personal finances separate. Clean, separate accounts make your income easier to verify.
- Avoid large unexplained deposits. Lenders will ask you to document where big deposits came from.
- Lower your debt-to-income ratio. Paying down credit cards or car loans before applying can improve your terms.
- Save a larger down payment. Putting more money down reduces the lender’s risk and can lower your rate.
- Plan your deductions with a tax professional. If you’re planning to buy a home in the next year or two, talk to your accountant about how your deductions will affect your qualifying income.
- Check your credit early. A higher score can unlock better rates, especially for non-QM loans.
Pros and Cons of Bank Statement Loans
Many of the best mortgage lenders for self-employed borrowers offer bank statement loans, so it’s worth weighing their pros and cons.
Pros:
- Qualify based on real cash flow instead of taxable income
- No tax returns required in most cases
- Available for primary homes, second homes and investment properties
- Higher loan amounts available with some lenders
Cons:
- Higher interest rates than conventional loans
- Larger down payments, often 10% to 20%
- Higher credit score requirements in many cases
- Fewer consumer protections than qualified mortgages
A Note From José María
I’m José María, and I created Finanzasclave to explain mortgage and home-buying decisions in plain English. Self-employed borrowers often assume they can’t get a mortgage, when in many cases they just need a lender that understands how their income works. That’s why this list of the best mortgage lenders for self-employed borrowers covers different situations instead of naming a single winner. My advice is to start by checking whether your tax returns are enough, and only move to a bank statement loan if they aren’t, because the difference in cost can be significant.
Frequently Asked Questions
Which are the best mortgage lenders for self-employed borrowers?
It depends on your situation. Guild Mortgage offers the widest range of loans, CrossCountry Mortgage is a strong option if you need to close fast, and Angel Oak or First National Bank of America are good choices if you need a bank statement loan or have a high debt-to-income ratio.
Can I get a mortgage if I’ve been self-employed for less than two years?
Yes, in some cases. With a conventional loan, lenders may accept a shorter history if you have at least 12 months of income from your current business and previously worked in the same field. Some bank statement lenders also accept shorter histories.
Do bank statement loans have higher rates?
Yes. Because they are non-qualified mortgages and carry more risk for the lender, rates are usually higher than for conventional loans. The difference depends on your credit score, down payment and the lender.
Can I use an FHA loan if I’m self-employed?
Yes. FHA loans are available to self-employed borrowers, but you’ll generally need to document your income with tax returns, usually for the last two years.
How much do I need for a down payment?
With a conventional loan, as little as 3% if you qualify with tax returns. Bank statement loans usually require at least 10%, and some lenders ask for 15% or 20%.
Final Thoughts
Being self-employed doesn’t mean you can’t buy a home. It just means you need to choose your lender more carefully. The best mortgage lenders for self-employed borrowers offer several ways to prove your income, from traditional tax-return loans to bank statement and 1099 programs. Start by checking whether you qualify for a conventional or FHA loan, compare offers from several lenders and prepare your documents early.
If you take the time to compare the best mortgage lenders for self-employed borrowers, you’ll find the option that fits your business and your budget.
This article is for informational purposes only and does not constitute financial advice. Lender requirements, rates and availability change frequently; confirm current terms directly with each lender before applying.