It can be empowering to work for yourself—roughly 10 million Americans are their own bosses.1 But the freedom of self-employment may also bring about uncertainty. You might wonder if you’re able to qualify for a mortgage. Good news: Self-employed individuals have several viable home loan options.
There are a few misconceptions out there about getting a mortgage as a self-employed professional. We’re here to bust those myths and tell you what you need to know to navigate the mortgage market with confidence.

Myth #1: You need several years of self-employment history to qualify.
Though some lenders require two years’ self-employment history to qualify for a home loan, Newrez only requires one, if you can meet certain criteria. If you transitioned from a traditional W-2 job to self-employment and can show continuous income, you may be eligible.
Myth #2: You can’t qualify if your income fluctuates.
Being self-employed sometimes means your income varies month to month. These sorts of unusual income situations are why Newrez created SmartSelf, our loan for self-employed individuals. So long as you can prove your income and cash flow, you could be eligible for a loan.
Myth #3: Bank statement loans are your only option.
Self-employed borrowers may be able to qualify for a conventional loan using two years of tax statements. However, non-qualified mortgages (non-QM) open up even more possibilities, allowing borrowers to verify their income with:
- Bank statements
- 1099s
- Profit-and-Loss statements
- Assets
Newrez’s SmartSelf loan enables borrowers to use any of these to qualify for a mortgage, and is flexible enough to let you qualify with multiple streams of income.
Myth #4: You must have perfect credit.
While strong credit helps, having imperfect credit is by no means a dealbreaker for getting a home loan, even if you’re self-employed. SmartSelf features a credit score minimum of 640—meaning any debts you took on while starting your business aren’t necessarily going to stop you from getting a loan.
Myth #5: Self-employed borrowers can’t get jumbo loans.
Jumbo loans are loans that exceed the maximum loan limit set by the Federal Housing Finance Agency, which in most parts of the U.S. is $806,500. If you’re hoping to secure a jumbo loan, Newrez’s SmartSelf loan makes this possible for qualified borrowers to receive up to $3.5 million. Because our self-employment loan allows for a higher debt-to-income (DTI) ratio than traditional loans (50% compared to 43%), you may be able to get a jumbo loan even as a first-time homebuyer. SmartSelf also carries lower reserve requirements so you don’t need to tie up as much cash in order to get a jumbo loan.
Make Your Homeownership Dreams a Reality
If you’re a non-traditional earner, you can rest easy knowing Newrez carries non-conventional products to help you achieve your homeownership goals. Reach out to our mortgage experts to learn more and find the best option for you.
References:
1 Employment Level - All Industries Self-Employed, Unincorporated (LNS12027714) | FRED | St. Louis Fed
This is not a commitment to lend. All loan programs are subject to credit, underwriting, and property approval. Programs, rates, terms and conditions are subject to change without notice. Other restrictions apply.