To get a mortgage when self-employed in California you either use two years of tax returns (conventional) or an alternative-documentation program — bank statements, a CPA P&L, 1099s, or assets — that qualifies you on real cash flow. Expect roughly 10–20% down and a mid-600s+ score.
Step 1 — Decide how you'll prove income
If your tax returns show strong net income, a conventional loan is cheapest. If write-offs shrink your net, use a bank-statement, P&L, or 1099 program instead.
Step 2 — Gather documents
- 12–24 months of bank statements (personal or business), or 2 years of tax returns for conventional.
- Proof of ~2 years self-employment (license, CPA letter). Some programs allow less.
- ID and the property details.
Step 3 — Down payment, credit, reserves
Plan on about 10–20% down, a credit score in the mid-600s or higher, and some cash reserves. Stronger profiles unlock better pricing.
Step 4 — Get pre-approved and shop
A broker pre-approves you and shops the file across many self-employed lenders. See how to apply for a bank-statement loan for the most common path.
Frequently asked questions
Can I get a mortgage if I'm self-employed with no tax returns?
Yes — bank-statement, P&L, 1099, and asset-based programs don't use tax returns. See our no-tax-return mortgage guide.
How long do I need to be self-employed to qualify?
Two years is standard, but some programs accept less than two years with compensating factors. We'll confirm your options.
What credit score do self-employed buyers need?
Often mid-600s or higher for alternative-documentation programs; conventional generally wants 620+. Higher scores earn better rates.