Can I get a mortgage with less than two years of self-employment?

Is two years a hard rule?

Two years is the standard, but not a wall. What lenders really want to know is whether your income is stable and likely to continue.

When can I qualify with less than two years?

• Same line of work: if you've been self-employed for at least 12 months and did the same kind of work as an employee before, many conventional loans can count your income.
• Strong, documented income in the year you have, with a tax return filed for it.
• Non-QM programs: some bank statement programs work with shorter self-employment histories, with larger down payments or other offsets.

When is it harder?

• You switched fields when you went out on your own.
• You've been self-employed less than a year and haven't filed a tax return with that income yet.
• Your first-year income is much lower than what you earned as an employee.

What can I do in the meantime?

• Keep clean books and separate business accounts from day one.
• File your first year's taxes on time so there's a return to use.
• Talk to me early, and I'll tell you when you'll hit the point where you qualify, and for how much.

Example scenario (illustrative)

An electrician in Houston worked for a contractor for eight years, then started his own company 14 months ago. Because he's in the same trade and his first year's tax return shows solid income, he qualifies for a conventional loan without waiting for a second year.

Our take

Don't assume you have to wait two years. Tell me your story, what you did before and what you're doing now, and I'll tell you exactly where you stand.