What lenders want to see
Lenders care that your income is regular and likely to continue. With no employer to call, they rely on documents that show a track record, usually covering at least the past year.
Documents that work
- Your most recent federal tax return with Schedule C or Schedule SE
- 1099 forms from clients or platforms
- Two to six months of bank statements showing regular deposits
- Earnings summaries from gig platforms
- A year-to-date profit and loss statement for a business
How lenders read uneven income
Many lenders average your income over 12 or 24 months rather than using your best month. Tax returns often show a lower figure than your deposits because of business deductions, and that net number is usually what counts. Plan your loan amount around it.
Ways to strengthen your application
- Deposit income into one accountA single, consistent account makes verification much easier.
- Keep business and personal spending separateClean statements are easier to read.
- Borrow conservativelyA smaller request relative to your average income is more likely to be approved.
- Have your taxes filed and currentAn unfiled year is one of the most common stumbling blocks.
A tip for new freelancers
If you've been self-employed less than a year, lenders may count only part of your income or ask for proof of prior work in the same field. Applying after you've built a few more months of deposits can improve your offer.
Common questions
Do lenders use my gross or net self-employment income?
Most look at your net income after business expenses, usually from your tax return. That's why a year with large deductions can reduce the amount you qualify for.
Can I qualify if I've been freelancing for less than a year?
Possibly, especially if you worked in the same field before or have steady deposits. Expect lenders to ask for more documentation or approve a smaller amount.
See what you could borrow
Loans from $200 to $5,000. Checking your rate won't affect your credit score.