Income
Buying if you are self-employed
More documentation, earlier conversations, fewer surprises under contract.
Buying if you are self-employed
Mortgage basics
Underwriting wants a clear picture of income after expenses, not the top line you quote at dinner. Tax returns, business documentation, and a story for anything lumpy all belong in the first meeting.
Your officer would rather adjust the conversation now than decline the file later.
01
Self-employed borrowers buy homes every day. The file is heavier, not hopeless.
02
Two years of returns is common. A recent business change can matter more than the years before it.
03
Bring the real returns, not a cleaned-up summary.
04
Start before you shop. Do not wait until you are writing offers.
How this actually goes
- 01
Call before you tour
A thirty-minute conversation about how you are paid beats a pre-approval letter that cannot survive underwriting.
- 02
Gather the business, not just the 1040
K-1s, W-2s from your own company, profit and loss, bank statements, and a letter for any large equipment write-off or one-time event. Your officer will tell you which of those this file needs.
- 03
Explain the ugly parts
A down year, a new entity, unpaid taxes, or a spouse on payroll will show up. Lead with them.
- 04
Keep the business boring under contract
Do not restructure, take a huge draw you cannot document, or switch how you are paid without asking. The file is watching the same months you are shopping.
What “self-employed” usually means here
You own a share of a business, you get a 1099, you have a schedule C, or your W-2 comes from a company you control. The exact test depends on the program. If you are not sure, say how you are paid and let the officer classify it.
Gig work, overlapping entities, and a W-2 job plus a side business are all common. They are also how people under-document a file by accident.
From this guide
Common questions
Often yes. Plan extra time and extra documents. Talk to a Hancock loan officer before you are under contract.
Income
Bring the real returns. Then shop.
Self-employed files close when the paperwork is early and complete.
Ready when you are
The house is the point.
Whether you’re buying your first home, moving into your next one, refinancing, or exploring your options, we’re here to help you figure out the next step.