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Getting a Mortgage When You Are Self-Employed
Self-employed borrowers need more than a monthly-payment estimate: lenders commonly review documented income history and debt-to-income ratio. A payment that feels manageable can still be difficult to qualify for if taxable income or debt is too high.
Start with documented income
Lenders commonly review two years of tax returns and may average eligible self-employed income. Large write-offs can lower taxable income and may reduce qualifying income even when cash flow feels strong.
The calculator uses annual net income, other monthly debts, and principal-and-interest payment. It is a preparation tool, not a lender underwriting engine.
Use DTI as an early warning
A debt-to-income ratio near or above 43% can be stretched for many conventional scenarios, though real thresholds vary by loan program, assets, credit, and lender.
Property taxes, homeowners insurance, HOA dues, closing costs, mortgage insurance, and lender fees are excluded. Add those before treating a payment as affordable.
Run two scenarios
Use the assumptions that fit your decision.
Higher documented income
$500,000 home, 20% down, 6.5%, 30 years, $150,000 net income, and $500 monthly debts.
Open these numbersSame home, thinner income
Keep the price and debts but use $90,000 annual net income.
Open these numbersQuestions people ask
How much income history do self-employed borrowers need?+
Many lenders look for two years of tax-return history, but requirements vary by program and lender.
Does this include taxes and insurance?+
No. It estimates principal and interest only and calls out the omission.
Is 43% DTI a hard rule?+
No. It is a commonly cited conventional reference point, not a guarantee or universal cutoff.
Can business deductions affect qualification?+
They can affect documented qualifying income. Ask a lender or tax professional before changing tax strategy for a purchase.
Related calculators
A note on estimates: Educational estimate only, not financial, lending, investment, or business advice.