Obtaining a Mortgage When You’re Self-Employed

marketingdept • June 18, 2025

Obtaining a Mortgage When You’re Self-Employed in the Age of COVID-19

There are many self-employed individuals that earn a good living. But without a regular paycheck, these workers might have a harder time proving their income than those who receive a traditional W-2. While this makes it more difficult to obtain a mortgage, it is possible to purchase a home if you’re self-employed.
As the U.S. has seen mortgage rates falling back to recent lows, many people are looking into refinancing or purchasing a home during the COVID-19 crisis. However, both of these loans have become difficult to obtain due to recent impacts on unemployment rates and the economy. 

Recent Changes in Guidelines for Self-Employed Borrowers


For self-employed applicants, lenders have traditionally looked to verify a self-employed borrowers’ business, income, and assets within 120 days. And while a typical crisis would see an extension of that timeframe to 180 days, vendors now only have just 10 days to verify income and assets during the COVID-19 pandemic.
Because of the recent changes, obtaining a mortgage can be even more challenging for self-employed workers as lenders consider the overall stability and viability of both your business and your income. Lenders will often consider the overall demand for your business, its location, financial strength, and whether or not it’s capable of continuing to provide you with enough of a stable income to support a mortgage. 
In response to COVID-19, many lenders have been making adjustments to their credit criteria with the goal of better accounting for the increased likelihood of forbearance and defaults. According to a survey conducted by the Mortgage Bankers Association in March, mortgage credit availability has fallen to the lowest level that we’ve seen in five years. 
JPMorgan Chase has also responded to the COVID-19 crisis by adjusting their underwriting guidelines to require new mortgage applicants to have a minimum FICO credit score of 700 and the ability to provide a 20% down payment. Under normal circumstances, self-employed borrowers have met lenders allowing a FICO credit score as low as 580 to qualify for a loan with a 20 percent down payment, given they can provide 24 months of bank statements proving they can consistently afford their loan payments. Self-employed borrowers with a FICO score of 720 or above may qualify for a mortgage with as little as a 10 percent down payment and a lower interest rate.  Even in times of crisis, lenders are primarily concerned that all applicants, including self-employed workers, have the ability to consistently repay their mortgage. They will need to see that your income is high enough to pay your mortgage and that you have a good history of repaying your debts.

April 8, 2026
For first-time buyers, the spring market can feel exciting and overwhelming, but it's important to find ways to balance your budget and honor your must-haves.
April 6, 2026
How to prepare for applying for financing as a small business owner, including important documents, planning strategies, and more.
March 18, 2026
Spring is one of the busiest times in the housing market, but along with the buzz comes a handful of myths that can hold you back—or cost you more than you expect.
March 18, 2026
How to compete in the spring housing market without overpaying, including Value Assurance, a way to strengthen your offer without taking on additional risk.
March 11, 2026
While owning a home certainly comes with expenses, the IRS offers several deductions and credits that can help reduce your taxable income.
March 3, 2026
Learn how the new mortgage privacy law reduces trigger leads and unwanted mortgage calls starting March 5, 2026, and what it means for homebuyers.
February 24, 2026
Here is a comprehensive guide of everything homeowners need to know before filing their 2026 taxes, including deductions, important forms, rental income, and more.
February 11, 2026
Value Assurance is a mortgage program that helps you make competitive offers by providing an estimated property value before you submit your actual bid.
February 4, 2026
What does it mean when a house is up for auction? Learn why homes go to auction, auction types, how the process works, risks, and what buyers should expect.
January 28, 2026
Designed for medical professionals, physician mortgages can help you get there sooner, with fewer barriers and more flexibility than traditional home financing.
Show More