Self-Employed Mortgages · Austin & Texas
Self-Employed Mortgages in Austin, TX
Compare Tax Returns, Deposits, 1099s, and a P&L.
Yes. You can get a mortgage in Austin when you work for yourself. We compare tax returns, 12 or 24 months of bank statements, 1099s, a CPA-prepared P&L, and eligible assets, and we use the path that fits. My team and I shop many wholesale lenders.
Can I get a mortgage when I work for myself?
Yes. Working for yourself does not, by itself, block a mortgage in Austin. A conventional, FHA, VA, or jumbo loan above the conforming limit may fit when the records support the payment. If you own 25% or more of a business, many agency loans ask for two years of tax returns. Some expenses, such as depreciation, can be added back. Not every deduction can.
My team and I compare the tax-return calculation with bank deposits, 1099s, a CPA profit and loss statement, and eligible assets. Gross deposits are not qualifying income, and not every deduction is added back. Looking at the file does not require you to amend your taxes.
Common Situations
Who Self-Employed Financing Is Built For
A few situations. We compare the records you have before assuming you need a different loan.
Tax Write-Offs Lower Your Net
Revenue is strong, and deductions leave less on the tax return. We can look at 12 or 24 months of business deposits. The lender still applies its own expense treatment. Deposits are not qualifying income.
1099 Contractors & Consultants
Consultants and contractors with 1099s. Gross 1099 income is the starting point. The program then applies its own expense factor before that income is used to qualify.
K-1 & Multi-Entity Business Owners
You own partnerships or S-Corps with retained earnings. We review the flow of funds across entities and credit usable distributions towards your purchase without the rigid restrictions of retail banks.
New or Rapidly Growing Businesses
In business less than two years, or last year jumped? Some programs will look at a shorter history. Others want a longer one. We compare what the documents support.
The Process
How It Works: 3 Simple Steps
What we look at first, and what has to happen before a closing date.
Quick Cash-Flow Review
Send 2–3 recent bank statements or a simple summary of monthly deposits. No hard credit pull and no tax returns needed upfront. Adam reviews your numbers personally.
Wholesale Lender Match
We shop your scenario across many wholesale lenders and compare price, fees, and the expense treatment each program actually uses.
A clear path to closing
Timing depends on the selected program, the documents needed, appraisal and title work. Confirm the milestones for your file before relying on a closing date.
Why Tax Returns and Deposits Produce Different Answers
The same kind of file, counted two ways: the tax return, and a deposit formula. Gross deposits are not the income figure, and not every deduction comes back.
One sample uses $480,000 of deposits ($40,000 a month) and a tax return that shows $85,000 after deductions. Here is why the two counts come out differently:
Sample tax-return arithmetic: $85,000 divided by 12. Not every deduction is added back.
If this sample uses a 50% expense factor on $40,000 of eligible deposits, half is $20,000.
This sample uses 50% so the steps are easy to see. A CPA letter explains the business. Eligible deposits are the ones that belong.
See detailed calculation formulas (Schedule C add-backs & deposit math)
1. Conventional Schedule C Add-Back Formula (Original Baseline)
Separate sample, not the card above. Assume $72,000 of net profit and $12,000 of depreciation. Adding back depreciation is not the same as adding back every deduction:
($72,000 net profit + $12,000 depreciation) ÷ 12 = $7,000 a month in this sample
2. Bank-Statement Deposit Calculation ($240,000 Baseline Receipts)
Another sample, with different deposits than the card. Assume $240,000 of eligible deposits and a 50% factor. Same steps, with a smaller deposit total:
$240,000 ÷ 12 = $20,000 a month × (1 − 50% assumed expenses) = $10,000 a month in this sample
→ For complete underwriting worksheets, formulas, and declining-income analysis, visit our Self-Employed Income Calculation Guide or our dedicated Bank Statement Mortgage Guide.
Explore the Details
In-depth underwriting guidelines, tax-return add-back worksheets, and entity documentation rules in our specialist guides.
How underwriters evaluate 12–18 month business track records, W-2 to 1099 continuity in the same field, and stabilizing revenue trends.
How to compare a non-QM quote with a conventional quote. Rate, cash to close, and a later refinance are file-specific.
Ordinary income and cash distributions are counted differently. Ownership and which account the lender reviews depend on the program.
Clear Answers
Frequently Asked Questions
Practical, straightforward answers to the questions self-employed borrowers ask most in Austin.
Do I need a special mortgage because I am self-employed?
No. Conventional, FHA, VA, and jumbo loans above the conforming limit may be available when your income, credit, funds, and property meet that program. An alternative-documentation mortgage is worth comparing when a different income calculation solves a specific problem.
Do I need to change my tax deductions before buying a home in Austin?
Start with an honest review of the records you already have. Some deductions can be added back, and another documentation method may fit. Talk tax planning through with your tax preparer. A mortgage review should not assume that giving up a legitimate deduction is your only option.
Can I qualify with less than two years of self-employment?
Some programs allow a shorter history in specific cases. How old the business is, the related work you did before, the earnings you can document, and whether the business can continue all matter. A 12-month bank-statement option does not automatically mean 12 months in business is enough.
Can I use business funds for the down payment or closing costs?
Possibly. The lender has to see that you can reach the funds, and it may need to look at what taking the money out does to the business. Tell me early if the same business will provide both the income and the money for closing.
Can K-1 income help me qualify?
It can. A K-1 reports income from an entity. It is not its own loan type, and it is not automatic proof that the cash is available to you. Ownership, distributions, the strength of the business, and your access to the income decide the analysis. See how K-1 income is reviewed.
What credit score and down payment do I need?
It depends on the path. On bank statement loans, minimum credit starts around 620 to 660, and the strongest files can buy with 10% down, which is 90% loan-to-value. Conventional, FHA, and VA follow their own minimums when your tax returns support the loan.
Can self-employed borrowers get a mortgage in Austin, TX?
Yes. Self-employed borrowers in Austin can qualify for conventional, FHA, VA, a jumbo loan above the conforming limit, or an eligible alternative-documentation mortgage. The path depends on the income you can document, credit, funds, and the property. Being self-employed is not, by itself, a reason for a no.
What is a bank statement loan and how does it work?
It uses 12 or 24 months of deposits instead of tax-return income. Business deposits are reduced by an expense factor, often 50% to start, or as low as 10% to 15% with a qualified expense letter from your tax preparer. Transfers, loan proceeds, and refunds come out first. The deposits are not qualifying income until that review is done. More detail is on the bank statement loan page.
What do I need to qualify for a self-employed mortgage in Austin?
Start with the property goal, the type of business, your ownership, how long you have been at it, and how you get paid. The lender then verifies the income method it will accept, credit, debts, down payment or equity, and reserves. Tax returns, statements, 1099s, or a P&L may be needed, depending on the program.
Why do write-offs affect my mortgage qualification?
Deductions can reduce the profit on the tax return, but the income a mortgage uses is not always that bottom line. Conventional rules allow some add-backs, and another documented method may fit. Compare both calculations before you assume the write-offs block the loan.
What is the difference between a bank statement loan, a 1099 loan, and a P&L loan?
Three ways to document the same business. A bank statement loan averages 12 or 24 months of deposits, then subtracts an expense factor. A 1099 loan starts from gross 1099 income with a flat expense factor. A P&L loan uses a profit-and-loss statement your CPA prepares. I run the ones that fit, because the one that qualifies you for the most is rarely the one with the better price.
Looking for technical tax-return add-back worksheets? View our self-employed income calculation guide.
Fast Scenario Review
Tell us about the documents you have
Tell me about your business scenario. No hard credit pull, no application fees, and no spam. I review the numbers personally.