Mortgage Blog

How to Get a Self Employed Home Loan | Refinance & Broker Tips

December 15, 2025 | Posted by: Jack Shotbolt

While self-employment may provide freedom and control over work, it can make getting a home loan feel more difficult. Most lenders want to see traditional pay stubs, steady monthly income, and long employment history. In fact, as a self-employed person, your income might look different on paper, even when you earn well.

The good news? Securing a self-employed home loan is absolutely possible if you know what lenders are looking for and how to prepare your financial documents. 

The process will be much easier and stress-free with the right support from an experienced Omaha mortgage broker like Shotbolt Mortgage.

Why Do Self-Employed Borrowers Face More Challenges?

Self-employed buyers generally have to surmount extra hurdles, not because lenders question their ability to afford a house, but because:

• Income varies from month to month.

• Business expenses reduce taxable income.

• Income verification involves more documents.

• Banks want proof of long-term financial stability

That's why using a specialized mortgage broker for self-employed borrowers makes so much sense. We understand how your income works and how to present the documents properly, while also matching you with the right lender.

1. Know What Lenders Look For

Before a lender approves a self-employed home loan, they want to see:

• Consistent income: typically 2 years

• Strong credit score

• Healthy savings

• Low debt-to-income ratio

Even with variable income, we support you in calculating your qualifying income based on lender rules.

2. Prepare Your Financial Documents in Advance

More paperwork for self-employed borrowers: Start gathering:

• Last 2 years of personal tax returns

• Last 2 years of business tax returns

• Business financial statements

• Profit-and-loss reports

• Bank statements

• 1099 forms (for contractors)

If your income dropped in one year, we explain that to the lender in the clearest possible way.

3. Keep Your Finances Stable Before Applying

Perchance to improve the chances of approval,

• Avoid taking new loans.

• Avoid opening new lines of credit.

• Keep your credit score stable

• Avoid large unexplained deposits

• Keep business and personal accounts separate

Your mortgage broker will also advise you on what to avoid during the loan process.

4. Choose the Right Loan Program

Different programs are available for a self-employed home loan, including:

• Conventional loans

• Best for strong credit and steady income.

• FHA loans

• Lower credit score requirement and low down payment.

• Bank statement loans

• Prove your income by using 12-24 months of bank statements.

• Non-QM loans

• Flexible for borrowers who cannot qualify for standard loans.

We compare all options to find the best fit for your financial needs.

5. Tips for a Strong Self-Employed Application

You can make your application stronger by:

• Keeping your business profitable

• Debt reduction

• Keeping clean financial records

• Separating personal from business expenses

• Filing taxes on time

• Increasing savings

We help you organize your documents to the standard required by lenders.

6. Refinancing Options Available to Self-Employed Homeowners

A self-employed refinance mortgage can help you do the following:

• Lower your interest rate

• Reduce monthly payments

• Switch from adjustable to fixed rates

• Withdraw money for business expansion

The refinancing process does indeed require most of the same documentation as that of the initial borrowing.

We guide you through every step so that you have an easy, hassle-free experience of refinancing.

Why Work with Shotbolt Mortgage?

We understand the difficulties self-employed buyers face.

We offer:

• More flexible lending options

• Access to multiple lenders

• Faster Approvals

• Personal loan guidance

• Clear communication

• Strong experience with self-employed borrowers

With the right broker, your home loan approval becomes that much simpler.

Frequently Asked Questions (FAQs)

1. Is it harder to qualify for a self-employed home loan?

Yes, it's sometimes more difficult because the lenders require more documentation, but if you have all the appropriate documents behind you, then the approval is quite achievable.

2. What documents do I need for a self-employed mortgage?

Most borrowers need tax returns, business financial statements, profit-and-loss reports, and bank statements. Your broker will advise you on precisely what to gather. 

3. Can I refinance if I'm self-employed? 

Yes, you can qualify for a self-employed refinance mortgage. Lenders will check your business income and financial stability just as they will for a new home loan. 

4. How can a mortgage broker for self-employed borrowers help? 

A broker finds the best loan options, prepares your documents, explains your income to lenders, and speeds up the loan process. Shotbolt Mortgage specializes in helping self-employed clients. 

Final Thoughts 

It may take extra planning, but a self-employed home loan is absolutely possible with the right strategy. When you keep your finances organized and team up with a trusted Omaha mortgage broker, nontraditional income doesn't have to stand in the way of attaining the home you want. 

Whether you're buying a new home or exploring a self-employed refinance mortgage, Shotbolt Mortgage is ready to guide you through the process from start to finish. If you want personalized loan advice, tailored to your business and income, contact our team today.

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