Applying for a Mortgage when you are Self-Employed or a 1099 Employee


Obtaining a mortgage loan can be complicated in itself, let alone when you are a self-employed or 1099 employee. Yony from Your DMV Team is here with a few useful tips.




  1. Show your History

To start, you will need to show at least two years of employment history. You can do this with tax returns or a CPA letter confirming your employment. Also you will need to produce your business license. For an extra boost, supply your year-to-date profit and loss statement. Most businesses should have this readily available, but contact your CPA if not.


  1. Prove Increasing Income

Overall, you will be in a better position if you show increasing income year over year. A decrease in income greater complicates the procedure, as the underwriter will likely ask more questions and dig deeper into your finances. With an increasing income, the two numbers will be used to find an average. A decreasing income will take the smallest number of the two, creating a less ideal situation.


  1. Limit Your Write-Offs

For at least two years prior to buying a home, try to limit deductions from your taxes. Although it may mean you are paying more in the short-term, you will be able to show a higher income when applying for your mortgage.


  1. 1099 Follows the Same Guidelines

Remember, a contractor or 1099 employee is still considered self-employed. Therefore, you should keep these same tips in mind.



These quick points will help you start the process of applying for a mortgage as a self-employed individual. If you have specific questions or would like more help along the way, please reach out to us at or 703-405-5182.