For self-employed borrowers, the most difficult part of the mortgage application process often involves gathering proof of income and verifying employment. Whether you're self-employed or an employed borrower, having the time and space you need to prepare to apply for a mortgage will make the process faster, easier and much less stressful. However, keep in mind that any business deduction you make on your federal tax return reduces your income to get a mortgage, often limiting self-employed people to a smaller mortgage that they would like and that they could still afford comfortably. For most mortgage programs, there is no absolute minimum employment requirement; you don't have to be at your current job or with your current employer for a specific period of time to qualify.
You can also consider working with a mortgage broker, whose job is to learn the ins and outs of each lender's policies regarding loans to self-employed workers and whose relationships should help you move forward with your mortgage application. While Rocket Mortgage's down payment requirements don't change as a result of self-employment, some mortgage lenders may try to mitigate your risks by having you make a higher down payment, resulting in a lower loan-to-value (LTV) ratio.
