What Documents Do You Need for a Self-Employed Mortgage in Texas?

Getting a mortgage when you’re self-employed can feel overwhelming. Unlike traditional borrowers, you don’t have a W-2 or standard pay stubs to prove income. But that doesn’t mean you can’t qualify.

In fact, at New Horizons Lending, we help self-employed buyers across Texas, freelancers, small business owners, and contractors successfully document their income and get

pre-approved with confidence.

If you're planning to buy a home and wondering what documents you’ll need, here’s a breakdown of what to prepare and how to make the process faster and easier.

Why Self-Employed Borrowers Need Different Documentation

Traditional mortgage applications rely on predictable paychecks and employer verification. But when you're self-employed, your income may vary from month to month, and lenders need a more complete picture of your finances.

That’s why lenders look at proof of income, business health, and financial consistency. The better organized you are, the smoother the process will be.

Core Documents You’ll Likely Need

Here’s a list of what we typically ask for at New Horizons Lending when working with self-employed homebuyers in Texas:

Income Verification

Depending on the type of mortgage program you're applying for, you may need one or more of the following:

● 1–2 years of personal and business tax returns

(This shows income trends and how long you’ve been self-employed)

● 12 to 24 months of business or personal bank statements

(A great option if tax returns don't reflect your true earning power)

● Year-to-date Profit and Loss (P&L) statement

(Especially helpful if you’ve had a strong financial year so far)

● 1099 forms

(If you’re an independent contractor or freelancer who receives 1099s instead of W-2s)

Business Verification

Lenders want to confirm your business is legitimate and active. Helpful documents include:

● Business license or registration (if applicable)

● Website, invoices, or contracts

(Shows steady work and active clients)

● CPA letter confirming self-employment

(Sometimes required for P&L-only loan options)

Asset Verification

Especially important if you're using savings for a down payment, or applying for an asset-based loan:

● Recent statements for:

○ Checking and savings accounts

○ Retirement accounts (401(k), IRA)

○ Investment accounts (stocks, crypto, etc.)

Personal Identification & Credit

These are required for all borrowers:

● Government-issued ID

● Social Security number (for credit check) Credit authorization form

Optional (But Helpful) Extras

While not always required, having these on hand can help streamline your application:

● Client contracts or recurring invoices

● Business insurance policy or EIN confirmation

● Lease agreement for office or storefront space

● Letter of explanation for income gaps or career transitions

At New Horizons Lending, our team can let you know exactly what’s needed for your unique situation, and help you pull together the right documents without all the guesswork.

What If You Don’t Have Everything?

Don’t worry, many of our self-employed clients don’t have perfect documentation when they come to us. That’s why we offer flexible loan programs that work with what you do have.

For example:

● Bank statement loans (no tax returns required)

● P&L-only programs

● 1099-only loan options

● Asset-based qualification for borrowers with strong savings

We specialize in matching you with the best mortgage path based on your current financial picture. No stress, no shame, just forward progress.

Tips to Stay Organized and Speed Up the Process

Here’s how to make your application smoother and faster:

● Keep personal and business accounts separate

It makes your income easier to verify.

● Use accounting tools or a CPA

This helps create clean P&L statements and track deductions.

● Stay consistent with deposits

Regular income—no matter the source—is easier to qualify with.

● Start gathering documents early

Even if you're just thinking about buying, it’s smart to be prepared.

Final Thoughts: Documentation Shouldn’t Hold You Back

Being self-employed means you’re already handling more than most, and applying for a mortgage shouldn’t add unnecessary friction. The key is working with a team that understands your situation and knows how to present your income clearly and professionally.

At New Horizons Lending, we don’t expect you to have it all figured out. We guide you every step of the way and help make sense of the process, so you can focus on what matters: finding the right home for you.

Ready to Buy a Home in Texas?