How Self-Employed Buyers Can Qualify for a Mortgage in Arizona

Buying a home is a big milestone, but for self-employed individuals in Arizona, qualifying for a mortgage can feel like a major hurdle. Traditional income documentation doesn’t always tell the full story of your financial health, especially if you run your own business, freelance, or work on 1099 contracts. The good news? There are flexible mortgage options designed specifically for entrepreneurs like you.

Why It’s Tougher for Self-Employed Borrowers

When you’re self-employed, lenders can't rely on W-2s to verify steady income. Instead, they analyze tax returns, which often show lower net income due to legal deductions. This can make it appear as if you earn less than you do.

But don’t worry, you still have multiple paths to homeownership.

Mortgage Options for Self-Employed Buyers in Arizona

1. Bank Statement Loans

Instead of tax returns, these loans use 12-24 months of personal or business bank statements to verify income.

• Perfect for: Entrepreneurs with consistent cash flow

• Tip: Keep clean, organized records to make underwriting easier

2. 1099-Only Loans

Ideal for independent contractors who receive regular 1099s instead of W-2s.

• Flexible underwriting guidelines

• Requires proof of consistent income for at least 1-2 years

3. Profit & Loss (P&L) Statement Loans

These allow you to qualify using a CPA-prepared profit and loss statement.

• Good for businesses that reinvest heavily

• May require less documentation than traditional loans

4. Asset-Based Lending

If you have substantial savings, you may qualify based on your liquid assets rather than your income.

• Works well for retirees, business owners, or investors

• No income required in some cases

How to Prepare for the Mortgage Process

• Work With a Lender Who Understands Self-Employed Borrowers: Not all lenders are comfortable with complex income structures. At Mortgages by Nikki, we specialize in self-employed financing.

• Organize Your Documentation: Have at least two years of business tax returns, bank statements, and a year-to-date P&L ready.

• Limit Large Write-Offs: If you're planning to buy soon, consider reducing your deductions temporarily to show more income.

• Plan Ahead: Get prequalified early to identify the best strategy for your situation.

Why Self-Employed Buyers in Arizona Choose Us

At Mortgages by Nikki, we guide self-employed clients through the process step by step. We know how to present your income in the best possible light and work with multiple lenders to find you the most flexible options.

Whether you’re in Phoenix, Mesa, Scottsdale, or anywhere in the Valley, we can help you qualify with confidence.

Let’s Talk About Your Homeownership Goals.
Book a discovery call today and let’s build a plan together.