Self-Employed Mortgage in Texas: More Ways to Qualify Now
Yes, you can get a mortgage when you're self-employed, and in Texas you have more routes than ever. Beyond traditional tax returns, there are bank statement loans, 1099 and profit-and-loss programs, and DSCR loans for investors. The right path depends on how you earn, how you file, and what you plan to buy.
The "Too Good at Write-Offs" Problem
You work 70-hour weeks. Your accountant works magic. Together you've legally shrunk your taxable income so well that, on paper, a traditional lender thinks you run a lemonade stand.
That's the catch with the standard route. Conventional, FHA and VA loans usually look at your net income after write-offs, often averaged over two years. Smart for tax season, awkward for a mortgage application.
The good news: you're no longer stuck with that one door.
Your Options, Plain English Edition
- Tax return loans (conventional, FHA, VA). Often the lowest-cost path if your returns show strong income. Some non-cash expenses, like depreciation, can sometimes be added back, so ask before you assume the worst.
- Bank statement loans. Instead of tax returns, the lender studies 12 or 24 months of business or personal deposits to estimate your income. These are non-QM loans, so expect pricing and down payment requirements that differ from conventional loans.
- 1099 and profit-and-loss programs. Contractors and freelancers can sometimes qualify using 1099s or a CPA-prepared P&L. Programs vary by lender.
- Asset-based options. Some programs count your savings and investments toward qualifying, which helps when income swings from month to month.
- DSCR loans for investors. Buying a rental? These qualify the property by its rent compared to the payment, rather than your personal income.
What Lenders Still Want
Flexible does not mean "no questions asked." Expect to show a solid credit history, a down payment, some cash reserves, and usually a couple of years in business. Every loan still has to prove you can repay it. We just get to prove it in more than one way.
Why a Broker Helps Here
Every lender treats self-employed income a little differently, and the differences matter. A broker can compare programs across lenders and match the loan to your goals, not the other way around. Buying a first home in Plano, moving to Frisco, or adding a rental to your portfolio each points to a different best fit.
Not Sure Where You Land?
Try the Income Calculator for a quick look at how your numbers might read, then get a no-pressure Quick Quote or apply online. Prefer a human? Call the Mohave Mortgage Texas branch at (469) 414-5554.
By Kelly Welton, NMLS #314183. Mohave Mortgage, Company NMLS #1830581, Texas Branch NMLS #2690682. For educational purposes only; this is not a commitment to lend. Programs, rates and terms vary by lender and are subject to credit approval and underwriting.
Equal Housing Opportunity.
