What Documents Do Self-Employed Borrowers Need for a Mortgage?
The short answer
Most self-employed borrowers need two years of personal tax returns, business returns if you own an S-corp or partnership, a year-to-date profit and loss statement, two months of bank statements and proof the business is active. Bank statement and P&L programs swap some of those for 12 to 24 months of statements. Gather it early and the whole process gets easier.
The checklist for traditional loans
- Personal federal tax returns, usually two years, all pages and schedules
- Business tax returns for S-corps, partnerships or corporations, usually two years
- K-1s, if you have them
- Year-to-date P&L, especially later in the year
- Two months of personal bank statements, and business statements if you use business funds
- Proof of business: license, CPA letter, website or client contracts
- Photo ID and details on debts such as car loans and student loans
For bank statement or P&L programs
- 12 or 24 months of personal or business bank statements
- A P&L prepared or signed by a CPA, enrolled agent or tax preparer, if required
- A CPA letter on your expense ratio or ownership percentage, if requested
- Proof you have been in business for at least the program minimum, often two years
Pro tips that save time
- Save everything as clean, complete PDFs. Every page, even the blank ones.
- Write short letters explaining big deposits or income dips before you are asked.
- Do not move money between accounts without a paper trail during the process.
- Tell your lender before you file this year's return.
Frequently asked questions
What if I filed an extension?
Lenders may use the prior two years plus proof of the extension, and may ask for the new return once filed. Timing matters, so ask early.
Do I need a CPA?
Not always, but a good tax pro makes self-employed approvals smoother.
Also see our general list of documents needed for a mortgage in Texas, call (469) 414-5554, or visit our Texas branch.
By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not a commitment to lend or financial advice. Programs, rates and guidelines vary and change.
