How Long Must I Be Self-Employed To Get A Mortgage?

Question: The company where I worked for eight years closed several months ago and as a result, I lost my job. As an alternative to seeking another position, I decided to go and work for myself. Good news: I’m making money. Now I’m interested in buying a home, but how long must I be self-employed to get a mortgage?

I’m not clear how lenders will count my income.

Answer: Job switches are not uncommon. According to the Bureau of Labor Statistics, the typical worker had been with the same employer for just 4.1 years as of January 2026. Given this reality, it’s not surprising that lenders have guidelines that show how to handle such cases.

Self-employed mortgage guidelines depend on the type of loan you are trying to get.

Check your home buying eligibility. Start here (Nov 12th, 2026)

FHA mortgages

The Department of Housing and Urban Development (HUD) sets a two-year standard for FHA loans. Lenders may consider self-employment income if the home buyer has at least two years of self-employment.

A buyer may have only one to two years of self-employment. In that case, the lender may count the income only if the buyer “was previously employed in the same line of work” where they are now self-employed “for at least two years.”

Those looking to get an FHA loan will have to follow these guidelines when applying.

Check your FHA eligibility. Start here (Nov 12th, 2026)

VA loans

According to the VA, self-employment for less than two years “cannot usually be considered stable unless the borrower has had previous related employment and/or specialized training.”

It adds that a prospective home buyer with less than one year of self-employment “can rarely qualify.”

There are other requirements that come with VA loans. Applicants must be veterans, service members, or Guard or Reserve members who meet service requirements. In some instances, surviving spouses can be eligible as well.

Fannie Mae

Fannie Mae is one of the two big buyers of conforming mortgages. Its Selling Guide tells lenders to analyze “the stability of the borrower’s income” before approving a loan for a self-employed borrower.

Because of this, Fannie Mae generally requires a two-year history of a buyer’s earnings. That history shows the income is likely to continue.

Some buyers can use just 12-24 months of self-employment. Their latest tax returns must show a full year of self-employment income. They also need a history of earning as much or more in the same field, or in a job with similar duties.

Freddie Mac

Freddie Mac is the other big buyer of conforming mortgages. Some borrowers have under two years of self-employment. For them, Freddie Mac requires two years of combined income from the business and a similar prior job.

The home buyer must also show tax returns which “reflect at least one year of self-employment income.”

So Freddie Mac does not require two years of self-employment history in every case.

Check your home buying eligibility. Start here (Nov 12th, 2026)

Self-employed mortgage options with a short history

Most mortgages follow the guidelines above. However, lenders also originate and keep some loans, so-called “portfolio” loans.

Portfolio loans can have guidelines that differ from the usual standards. So some lenders may be willing to finance a self-employed home buyer with less than a year or two of experience.

Another option for buyers with a short self-employment history is a bank statement loan. These non-QM loans look at your bank deposits instead of tax returns to estimate your income. Terms vary by lender. Our guides to bank statement loans and calculating self-employed income explain more.

How long do you need to be self-employed to get a mortgage?

Qualified home buyers with at least two years of self-employment should have the smoothest path. Those with one to two years of self-employment will need to fully document their income and experience. They can also expect more lender scrutiny.

Home buyers with less than one year of self-employment will likely need to wait before applying for a mortgage. The alternative is to find a friendly portfolio lender.

Check your home buying eligibility. Start here (Nov 12th, 2026)