“I just went out on my own. Can I still buy a house?” I hear this all the time from contractors, real estate agents, nurses and doctors who switched to contract work, and people who just started a business. The honest answer: it depends on how long you’ve been self-employed, what you did before, and which loan you use. Here’s how it works.

The General Rule: About Two Years

Most traditional loan programs (conventional, FHA, VA and USDA) look for about a two-year history of self-employment. Lenders want to see that the income is stable and likely to continue, and two years of tax returns shows that.

When One Year Can Work

Several programs allow between one and two years of self-employment when you can show you worked in the same line of work before going out on your own. For example:

• A nurse who worked in a hospital for years and now works on 1099 contracts.
• A licensed contractor who worked for a builder before starting their own company.
• A loan officer or real estate agent who changed how they’re paid, not what they do.

In these cases, the prior W-2 history in the same field can help make up for a shorter self-employment record. Some conventional loans can also use just one year of tax returns when the automated underwriting system allows it, typically for an established business.

Less Than a Year: Harder, but Not Always Impossible

With less than a year of self-employment, most traditional programs won’t count the income yet. A few things to know:

• A partial first-year tax return may not be enough. If you started your business in March, your first return covers only part of a year. Some programs require a full 12 months of self-employment income, so a partial year may not qualify yet. Lenders read this differently, so ask before you assume.
• A new contract isn’t the same as income history. I recently had a physician whose 1099 contract had no guaranteed salary or minimum. The underwriter couldn’t use it as income until there was a track record. If your contract has a guaranteed minimum, send it over. That can change the answer.
• A co-borrower or asset-based loan can bridge the gap. A spouse’s W-2 income, or significant savings under an asset-based program, may qualify you while your business builds its history.

What About Bank Statement Loans?

Bank statement and P&L programs use deposits or a profit-and-loss statement instead of tax returns. Many still want to see the business open for about two years, and some accept less. They’re non-QM loans, so expect a larger down payment and higher cost. See bank statement loans in Jacksonville.

What to Do Now

1. Gather your last two years of tax returns (or your first return), year-to-date P&L, business license and any contracts.
2. If you just switched to 1099, keep proof of your prior W-2 work in the same field.
3. Talk to a broker before you file your next return. How you file can affect what you qualify for.

For every self-employed option in one place, see the Self-Employed Mortgage Guide for Florida.

Frequently Asked Questions

Can I get a mortgage with one year of self-employment?

Sometimes. Several programs allow one to two years of self-employment when you previously worked in the same line of work. Lender overlays may be stricter.

Can I use a partial-year tax return from my first year in business?

It depends on the program. Some require a full 12 months of reported self-employment income, so a partial first-year return may not qualify yet. Ask before you apply.

Can a new 1099 contract be used as income?

Often not right away, especially without a guaranteed salary or minimum. Lenders usually need a history of receiving the income. A contract with guaranteed pay can help.

Does it help if I worked in the same field before?

Yes. Prior W-2 work in the same line of work is one of the main factors that can let lenders accept less than two years of self-employment.

Get started: Free rate quote · Start an application · Call or text 904-880-6741.

Available for qualified borrowers. Program guidelines apply and may change, and lender overlays may be stricter. Rates and terms are subject to change. All loans subject to credit approval. Reviewed September 2026.

Nathan Young, NMLS #325206 | North Star Mortgage Network, Inc., NMLS #356789 | 12058 San Jose Blvd, Suite 404, Jacksonville, FL 32223 | 904-880-6741 | Equal Housing Lender