Self-Employed Mortgage in Florida: Every Way to Qualify

Short answer

Self-employed borrowers in Florida usually qualify one of five ways: two years of tax returns on a conventional loan (sometimes one year), 12 or 24 months of bank statements, a profit and loss statement, one year of tax returns on a non-QM loan, or, for rental property, the rent through a DSCR loan. Fannie Mae treats you as self-employed if you own 25% or more of a business. The right route depends on how much income your tax returns show after write-offs.

Why self-employed income is harder to document

Under the federal ability-to-repay rule, a lender must find out, consider and document your income, assets, employment, credit history and monthly expenses before making a mortgage, as the CFPB explains. A W-2 employee proves income with pay stubs. You prove it with paperwork about your business.

Fannie Mae calls you self-employed if you own 25% or more of a business. That includes LLC members, S-corp owners, sole proprietors and 1099 contractors.

The usual problem is write-offs. A business that deposits $300,000 a year may show far less on Schedule C or a K-1 after vehicle, home office and depreciation deductions. A conventional lender qualifies you on the taxable number. Non-QM lenders can look at deposits or a P&L instead. That is the whole choice in one sentence: tax returns that show enough income usually get the better pricing; if they do not, there are other routes.

Route 1: Conventional with tax returns

A conventional loan under Fannie Mae's self-employment income rules is usually the lowest-cost option when your returns support the payment.

• Two years is the standard. Fannie Mae generally wants a two-year history of self-employment earnings, with signed personal returns and all schedules. Business returns may be needed too. IRS transcripts with all schedules can stand in for the returns.
• Less than two years can work if your most recent returns show a full 12 months from the current business and you earned the same or more before in the same field or a similar role.
• One year of returns is allowed when the business has existed for five years, you have owned at least 25% of it for those five consecutive years, and the lender completes a cash flow analysis (Form 1084 or equivalent).
• Business returns can be waived when you have five years in the business, your self-employment income is increasing, and you use personal funds for down payment, closing costs and reserves.
• DTI: Desktop Underwriter can approve up to 50% total debt-to-income (DTI).

The lender averages your income, adds back non-cash items such as depreciation, and looks hard at any year-over-year drop. A lower second year is a common problem on self-employed files.

Routes 2 to 5: when the tax returns do not tell the story

These are non-QM programs. They are legal, documented loans, just outside Fannie Mae and Freddie Mac rules. Expect a larger down payment and a higher rate than conventional; the exact terms vary by lender and change often.

• Bank statement loans: the lender uses 12 or 24 months of personal or business statements instead of tax returns. Our guide on how bank statement income is calculated walks through deposits, expense factors and a worked example.
• Profit and loss loans: income comes from a P&L, usually prepared or signed by a CPA, enrolled agent or tax preparer, sometimes with a few months of bank statements to back it up.
• One-year tax return loans: for businesses with one strong recent year, or when the year before was low. Fewer documents than conventional, priced as non-QM.
• Asset depletion: some lenders turn verified, seasoned liquid assets into a monthly income figure. Every dollar has to be sourced and documented. This fits business owners with large savings and small taxable income.
• DSCR loans, investors only: the property's rent qualifies the loan, not your income. DSCR loans are business-purpose loans for investment property, never for your own home. See DSCR loan requirements in Florida.
• Stated income loans: a business-purpose option for investment property where personal income is not verified the usual way.
• WVOE does not apply. A written verification of employment is completed by an employer. If you own the business, you cannot verify yourself, so WVOE programs are for W-2 wage earners.

The ability-to-repay rule still applies to non-QM loans on your own home. "No doc" does not mean no proof; it means different proof.

Which route fits you

• Taxable income supports the payment, two steady years: conventional. Usually the best pricing and PMI can come off.
• Strong deposits, low taxable income: bank statement loan.
• Newer or seasonal deposits, but a CPA who knows your books: P&L loan.
• One good recent year after a weak one: one-year tax return loan, or conventional if you meet the five-year ownership rule.
• Large savings, little reported income: asset depletion.
• Buying a rental: DSCR, business purpose.

Many owners use non-QM now and refinance into conventional later once two years of returns show the income. Rates vary daily; call 305-425-1990 for today's pricing on each route.

Documents checklist

Gather these before you apply. Not every route needs every item.

• All routes: photo ID, two months of personal bank statements for down payment and reserves, explanation for large deposits, and gift letters if family is helping.
• Ownership proof: operating agreement or articles, a CPA letter stating your ownership percentage, or your entity record on Sunbiz.
• Conventional: two years of signed personal returns with all schedules (or one year if you qualify), business returns (1120-S, 1065 or 1120) and K-1s when required, and a year-to-date P&L if the lender asks.
• Bank statement: 12 or 24 consecutive months of complete statements, every page, for the account used.
• P&L: a 12 or 24 month P&L from your CPA, enrolled agent or tax preparer, plus their license information.
• One-year tax return: the most recent year's personal (and business, if applicable) return.
• DSCR: the lease or a market rent estimate, entity documents if closing in an LLC, and reserves.

Send clean PDFs, not phone photos. Missing pages are a common cause of delays.

The Florida angle: Sunbiz, LLCs and 1099 workers

South Florida runs on small businesses: contractors, truckers, realtors, salon owners, importers and gig workers paid on 1099s. Lenders here see a lot of LLCs and S-corps, and they check them.

• Sunbiz is the official record. The Florida Division of Corporations at sunbiz.org shows whether your entity is active, its officers or managers, and its last three annual reports. Underwriters often pull it to confirm the business exists and that your name is on it.
• Keep the annual report current. The 2026 annual report deadline was May 1, with a $400 late fee for LLCs and corporations after that. Entities that do not file by the third Friday of September are administratively dissolved. A dissolved LLC can stall a loan, so reinstate before you apply.
• Match the names. The business name on your bank statements, P&L and tax returns should match Sunbiz. If you changed names or added a partner, bring the amendment.
• 1099 only, no entity: that is fine. Your Schedule C, 1099s and bank statements do the work.

How QMS handles self-employed files

QMS Lending (NMLS #1781090) is an independent mortgage broker in Miami, FL with access to 100+ lenders, conventional and non-QM. We review your returns and statements first, then show you which routes you may qualify for and what each one costs, so you are not forced into a non-QM loan when conventional would work, or the reverse. In English or Spanish. Subject to credit approval.