No W-2, No Problem: How Self-Employed Borrowers Can Get Approved for a Mortgage

Running your own business or freelancing full-time? Congrats — you’re living the dream...until you apply for a mortgage.

Suddenly, your impressive income doesn’t seem to matter.

Lenders question everything, demand endless paperwork, and make you jump through hoops your 9-to-5 friends never even see.

Good news:

✅ Self-employed borrowers can absolutely get approved for a mortgage — without sacrificing their sanity.


✅ In fact, stated income loans are designed specifically to help.

This guide breaks down how it works — and how you can get to the closing table without a W-2 in sight.

Why Mortgages Are Tougher for the Self-Employed

Banks love predictability. When you’re self-employed, your income looks messy compared to a simple W-2 employee’s paycheck.

Even if you make six figures, your tax returns (full of deductions and write-offs) might show far less. That makes lenders nervous

Top Challenges Self-Employed Borrowers Face

How Stated Income Loans Help Self-Employed Buyers

Instead of forcing you to document every dollar of income the traditional way, stated income loans offer a flexible alternative:

• You state your income on the application
• Lenders verify your credit, assets, and property value instead of traditional paychecks
• No W-2s, no full tax return analysis

It’s not "no proof" — it’s different proof.

Table: Full Doc vs. Stated Income: What's Different?

Requirements for Self-Employed Borrowers

Here’s what you’ll typically need:

✅ Credit Score: 680+ minimum, 700+ preferred


✅ Down Payment: 20–30%


✅ Cash Reserves: 6–12 months of mortgage payments


✅ Proof of Assets: Solid bank or investment accounts

Minimum Requirements for Stated Income Loan Approval

Pros and Cons for Self-Employed Buyers

Pros vs Cons of Stated Income Loans

Case Study: How Carlos Bought His Home Without W-2s

Carlos owns a small but thriving graphic design studio.
While his gross revenue was $180,000 last year, tax write-offs brought his taxable income down to just $40,000.

Banks laughed at his traditional loan applications — until Carlos found a stated income loan:

• 710 credit score
• $100,000 in liquid assets
• 25% down payment on a $320,000 condo

✅ Approved in 24 days


✅ Competitive rate


✅ No W-2s or full tax returns needed

Carlos is now living proof that being self-employed doesn’t have to mean being shut out.

Tips to Increase Your Chances

Want to boost your approval odds even further?

🔹 Save More for Down Payment: Bigger down payment = lower risk for the lender = better rates.

🔹 Polish Your Credit: Pay down debts and correct any errors.

🔹 Show Healthy Bank Statements: Big deposits, minimal overdrafts.

🔹 Work with a Specialist Broker: Not all loan officers understand self-employed finances. (We do.)

Conclusion: Being Self-Employed Is a Strength — Not a Barrier

Your self-employment journey shows independence, determination, and resilience — traits every great homeowner needs.

Yes, getting a mortgage is different.

Yes, it’s a little harder.

But with smart preparation and the right loan strategy, you can absolutely get approved and build your next chapter.

Ready to Make It Happen?

👉 If you have strong credit, healthy savings, and self-employment income, our team at Really Estate can help match you with lenders who understand your unique situation.

Select your home type today — and let’s turn your business success into homeownership success.

‍