The Card Team

06/12/2026

This Week's Focus: Self-Employed Borrowers

Many self-employeds assume they can't qualify for a mortgage because their tax returns don't reflect the income they actually earn. As a result, some delay purchasing a home unnecessarily-- or never reach out to an agent or lender.

QUESTION #1
"I write off everything. Can I still qualify for a mortgage?"

Often, yes. I see this frequently! Many traditional mortgage programs use tax return income, but there are many alternatives today designed specifically for self-employed borrowers. And the rates are very competitive!

QUESTION #2
"How many years do I need to be self-employed?"

Most conventional programs require a two-year history, although there are exceptions depending on the borrower's overall profile and line of work. Five years self-employment is optimal for confirming financing.

QUESTION #3
"My CPA minimizes my taxes. Will that hurt my mortgage approval?"

Sometimes. This is one reason I encourage business owners to discuss major purchase plans with both their CPA and lender before filing returns. A little planning can make a tremendous difference. And sometimes it is a minor tweak that has little or no effect on tax liability.

QUESTION #4
"Can I qualify using bank deposits instead of tax returns?"

Absolutely. Many self-employed borrowers qualify using 12- or 24-month bank statement programs when traditional documentation doesn't accurately reflect their cash flow.

AI Prompt of the Week for Realtors
Copy and paste this prompt into ChatGPT:

"Act as a top-producing Realtor. Create a friendly email to a self-employed business owner explaining why they should speak with a mortgage professional before assuming they cannot qualify for a home loan. The email should be educational, non-salesy, under 250 words, and end with a question that encourages a response."

Have a wonderful weekend!
Karen Card
The Card Team
Helping Veterans, Self-Employed Borrowers, First-Time Buyers, Seniors, and Homeowners Navigate Today's Mortgage Market.