Getting An FHA Loan While Self-Employed: Guidelines And Tips

Apr 10, 2024

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Successful self-employed individuals have the grit and determination to run profitable businesses. They are no strangers to coming up with creative solutions to challenges and hindrances. While qualifying for an FHA loan may not be a typical business obstacle, it can be a hurdle for self-employed people looking to become homeowners.

Getting an FHA loan while self-employed is possible. While there are additional standards to pass compared to what the average employee faces, FHA loans are available to business owners as well. This guide can help you prepare for your FHA loan application as a self-employed person.

Can You Get An FHA Loan While Self-Employed?

You can qualify for a Federal Housing Administration (FHA) loan while self-employed – and you can also qualify for a mortgage in general. The standards might be more challenging for self-employed people because of the dynamics of running your own business, but overall, working for yourself doesn’t have to hinder you from getting a mortgage.

Mortgage lenders have conditions that self-employed individuals must meet to obtain FHA loans. Specifically, an applicant must own at least 25% ownership interest in their business. Additionally, they must have a satisfactory debt-to-income ratio and provide sufficient financial documentation to prove they qualify.

See What You Qualify For