Self-employed mortgage with 1 year of income: 4 options
Self-employed less than two years, or a 1099 earner? Fannie Mae and FHA rules for 12-24 months of history, one-year tax returns, and non-QM bank statement and 1099 loans.
The short answer
You can get a mortgage with one year of self-employment income in four main ways. Fannie Mae accepts 12 to 24 months of self-employment if your prior job was in the same field at the same or higher pay, and accepts one year of tax returns if the business is at least five years old (Selling Guide B3-3.5-01). FHA accepts one to two years if you worked two years in the same line of work first (HUD Handbook 4000.1). Non-QM bank statement and 1099 loans are the other routes.
Key numbers
- Standard history
- 2 years (Fannie Mae, FHA)
- Fannie Mae, 12-24 months
- OK with prior same-field income
- FHA, 1-2 years
- OK with 2 prior years in the same line of work
- 1099-only example
- Last 12 months of 1099s (NASB)
Your options by documentation
| Option | History you need | Income documents | Source |
|---|---|---|---|
| Conventional (Fannie Mae), new business | 12 months self-employed + prior same-field income at the same or higher level | Most recent signed personal and business tax returns showing 12 full months | Selling Guide B3-3.5-01 |
| Conventional (Fannie Mae), one-year returns | Business open 5+ years, you own 25%+ for 5 years | One year of personal and business returns + cash flow analysis | Selling Guide B3-3.5-01 |
| FHA | 1 to 2 years self-employed + 2 years prior in the same or a related line of work | Two years of personal (and usually business) returns | HUD Handbook 4000.1 |
| Non-QM bank statement | Often 2 years self-employed | 12 or 24 months of bank statements | Bank statement loans |
| Non-QM 1099 only | 12 months of 1099s; 2 years in the same line of work (NASB) | 1099-NEC forms + year-to-date income | NASB, Apr. 2026 |
Fannie Mae: less than two years self-employed
Fannie Mae "generally requires" two years of earnings history but accepts less when your most recent signed returns show a full 12 months of income from the current business and you can document prior income at the same or higher level in the same field or a similar occupation. The lender also weighs your experience and how much debt the business has taken on (Selling Guide B3-3.5-01).
FHA: one to two years
FHA counts self-employment income of one to two years only if you were previously employed for at least two years in the same line of work or a related occupation. Income that dropped more than 20% over the analysis period forces a manual review (HUD Handbook 4000.1).
1099 contractors
If you're paid on 1099s rather than owning a business with its own returns, some non-QM lenders qualify you on the 1099s themselves. NASB, for example, uses the last 12 months of 1099-NEC income plus year-to-date documentation, generally wants a 700 credit score and 20% down, and requires a two-year history in the same line of work (as of April 2026). Other lenders apply an expense factor or set different minimums.
Tips before you apply
- Lenders qualify you on income after business expenses, so heavy write-offs lower what you can borrow.
- File and sign your most recent return before applying; a year that isn't filed usually can't be counted.
- Keep business and personal accounts separate, which makes bank statement loans much easier.
- Check your debt-to-income ratio using the income a lender would count.
Frequently asked questions
Can I get a mortgage if I've been self-employed for 1 year?
Often yes. Fannie Mae and FHA both accept one to two years of self-employment when you worked in the same field before, and non-QM bank statement or 1099 loans are other options.
Do you need 2 years of tax returns to get a mortgage if self-employed?
Not always. Fannie Mae accepts one year of personal and business returns when the business is at least five years old and you've owned at least 25% of it for five years.
Can I get a mortgage with 1099 income only?
Yes, through conventional or FHA loans if you have the required history on tax returns, or through non-QM 1099-only programs. NASB, for example, qualifies on the last 12 months of 1099-NEC income.
How do lenders calculate self-employed income?
From your tax returns, after business expenses, usually averaged over two years. A declining trend lowers the income used. Bank statement loans instead apply an expense factor to your deposits.
What credit score do you need as a self-employed borrower?
The same as other borrowers for conventional and FHA loans. Non-QM programs commonly ask for 620 to 700 depending on the lender.