Self-Employed Mortgage Qualifier
Find out how much house you can actually afford based on standard freelance underwriting guidelines.
Freelancer Mortgage Warning
Most traditional banks use your NET income after deductions. Heavy tax write-offs may severely reduce your qualifying amount. Consider a non-QM Bank Statement loan for higher buying power.
Tax Return History
Alternative Income (Last 12 Mo)
Debts & Loan Details
Maximum Buying Power
$414,392
Qualification by Method
Tax Return Standard
Qualifying Income: $4,167/mo
$207,663
Bank Statement Non-QM
Qualifying Income: $5,833/mo
$266,729
1099 Direct Non-QM
Qualifying Income: $10,000/mo
$414,392
Disclaimer: This is an estimate only. Actual qualification depends on credit score, specific lender requirements, property taxes, insurance, and your complete financial picture. Consult a licensed mortgage broker for personalized guidance.
Frequently Asked Questions
Why is it harder to get a mortgage as a freelancer?
Traditional banks base your loan amount on your Net Income (the amount on the bottom of your Schedule C tax return). Because freelancers take legitimate business deductions to lower their tax bill, their "qualifying income" for a mortgage often looks much lower than what they actually bring in.
What is a Bank Statement Loan?
A bank statement loan (also known as a Non-QM loan) does not look at your tax returns. Instead, the lender looks at 12 to 24 months of your business bank statements, totals all the deposits, and applies a standard expense factor (often 50%). This usually results in much higher buying power for freelancers.
What are DTI Ratios?
DTI stands for Debt-to-Income. The "Front-End" ratio (usually capped at 28%) is the percentage of your monthly income that goes toward your housing payment. The "Back-End" ratio (usually capped at 43%) includes your housing payment plus all other monthly debts like auto loans and credit cards.
How many years of history do I need?
Most traditional lenders want to see at least 2 full years of self-employment tax returns. However, if you have been in the same line of work previously as a W-2 employee, some lenders may allow just 1 year of self-employed history.