Self Employed and Buying Your First Home in Houston

Some business owners hear no from a bank the first time they ask. Often, the reason is simple. Your tax return shows less income than you really make, because you wrote off your costs. That can lower your taxes. But it can make a loan harder.

The good news is there is more than one way to show your income. This page walks you through both, in plain words.

Two ways to show what you earn

Way 1: your tax returns. The lender usually looks at your last two years of returns. They add back some write offs, like the wear and tear on your truck or tools. If your returns show steady income, this path can work well. It can also open the door to more first time buyer help.

Way 2: your bank statements. This is called a bank statement loan. The lender looks at the money coming into your account over the last 12 or 24 months. They use your deposits, not your tax return, to figure out your income. On a business account, the lender takes out a share for business costs. Many programs count personal income deposits in full when you also keep a separate business account. This can help owners who write off a lot.

You do not have to pick on your own. I look at both for you and show you which one fits.

Can I get first time buyer help if I am self employed?

Yes, it is possible. Some Houston and Texas help programs can help with your down payment or closing costs. Many of them want to see your tax returns, so the tax return path often opens more of these doors. I will check what you may qualify for before we pick a path.

What to gather before we talk

You do not need all of this on day one. But having it ready makes things go faster.

• A photo ID
• Your last two years of tax returns, with all pages
• Your last 12 or 24 months of bank statements, personal or business
• Proof of how long you have been in business. A letter from your CPA or tax preparer often works. Some lenders take a business license or your business filing papers
• Your personal bank statements for the last two months
• A list of your monthly debts, like car loans and credit cards

Want a full list you can check off? See my bank statement loan checklist.

How it works with me

1. We talk. You tell me about your business and your goals. No pressure.
2. I look at both paths. Tax returns and bank statements, side by side.
3. You apply online. You can do it from your phone.
4. You get a pre-approval letter if you qualify, so you can shop for homes with confidence.
5. We close. I stay with you from offer to keys.

Common questions