Can I Buy a House if I’m Self-Employed in Washtenaw County, Michigan?
Yes! You can buy a house in Washtenaw County if you’re self-employed. Being a business owner, freelancer, contractor or entrepreneur does not automatically make you ineligible for a mortgage. The difference is that a lender may need more documentation to determine how much of your income can reliably be used to qualify you.
If your income does not fit neatly into a W-2, the home-buying process may look a little different — but different does not mean impossible.
What Do Mortgage Lenders Look at When You’re Self-Employed?
Mortgage approval is about more than how much money your business brings in.
Depending on the loan program and your individual situation, a lender may look at things such as:
Your documented qualifying income
How long you have been self-employed
Your personal and, when applicable, business tax returns
The stability and history of your income
Your credit
Your monthly debts
Money available for your down payment and closing costs
Financial reserves
The overall financial health of the business
For conventional loans, Fannie Mae generally considers someone with a 25% or greater ownership interest in a business to be self-employed.
How Long Do I Need To Be Self-Employed To Buy a House?
Fannie Mae generally calls for a two-year history of prior earnings when evaluating self-employment income. However, income may sometimes be considered with at least a full 12 months of self-employment when the borrower also has a documented history of earning comparable income in the same field or performing similar work.
Your lender ultimately determines whether your specific income and documentation meet the requirements of the loan program you are using.
So if you recently left a traditional job to start your own business, don't automatically assume homeownership is off the table.
What Documents Might a Self-Employed Home Buyer Need?
This is where self-employed buyers usually notice the biggest difference.
Depending on your business structure and loan program, you may be asked for documents such as:
Personal federal income tax returns
Business federal income tax returns
Applicable tax schedules
IRS tax transcripts
Business licenses or formation documents
Profit-and-loss information
Business bank statements
Personal bank statements
Documentation showing how long the business has operated
Explanations for significant changes in business income
The Consumer Financial Protection Bureau notes that buyers who are self-employed or have irregular income may need additional documentation and recommends discussing their specific situation with their loan officer early in the process.
Do Business Tax Write-Offs Affect How Much House I Can Buy?
They can.
One of the biggest surprises for some self-employed buyers is learning that business revenue and mortgage-qualifying income are not necessarily the same thing.
A business may collect a healthy amount of revenue while the owner's taxable or qualifying income is considerably lower after allowable business deductions.
Mortgage underwriting involves analyzing the income shown on your tax documents and determining what income can reasonably be expected to continue.
Some items may be treated differently during that calculation, which is why you should have a qualified mortgage professional review your actual financial situation instead of trying to determine your buying power from your gross business revenue alone.
Should I Get Preapproved Before Looking at Homes in Washtenaw County?
Yes! For a self-employed buyer, we strongly recommend starting with the financing conversation.
A thorough mortgage preapproval can help you understand:
What income the lender can use
Approximately how much you may qualify to borrow
How much cash you may need
Whether additional documentation is required
Which loan options may fit your situation
Whether there are financial issues worth addressing before you begin making offers
Then we can build your home search around real numbers instead of guesses.
That could mean exploring homes in Ypsilanti, Ann Arbor, Pittsfield Township, Superior Township, Saline, Dexter, Chelsea or elsewhere in SE Michigan based on the price range, location and lifestyle that make sense for you.
What If My Income Changes From Year to Year?
Variable income is common when you own a business.
One great year followed by a slower year does not tell the whole story, which is why lenders may review income trends and the overall stability of the business.
Fannie Mae's guidance instructs lenders evaluating self-employed borrowers to consider factors including income stability, the financial strength of the business and its ability to continue generating sufficient income.
That doesn't automatically mean there is a problem. It means your lender may need enough information to understand the story behind the numbers.
Can I Use Money From My Business for My Down Payment?
Potentially, but talk with your lender before moving money around.
When business assets are being used toward a down payment, closing costs or required reserves, additional analysis may be necessary to determine whether removing those funds could negatively affect the business.
Avoid transferring large amounts of money between personal and business accounts simply because you've found a house you love.
Good documentation can make everybody's life easier.
What Should a Self-Employed Buyer Do First?
You do not need to have everything figured out before contacting a real estate agent.
A good starting point is:
1. Talk with a mortgage professional.
Explain exactly how you're paid and how your business is structured.
2. Gather your financial documents.
Don't wait until you are under contract to start hunting for tax returns and business records.
3. Find out your realistic buying range.
The number that matters is what works with both your mortgage approval and your actual monthly budget.
4. Build your Washtenaw County home search around that number.
That's where Hinton Real Estate Group comes in.
We can help you compare homes, communities, property taxes, housing types and locations once you understand the financial side of the equation.
Frequently Asked Questions
Can I get a mortgage if I've only been self-employed for one year?
Possibly. Some conventional borrowers with at least 12 months of self-employment may be considered when they also have a documented history of earning similar income in the same or a related field. Your lender will need to evaluate your individual circumstances and loan program.
Do self-employed buyers need two years of tax returns?
Two years of personal and sometimes business tax returns are commonly used to document self-employment income. There are situations under conventional guidelines where less documentation may be permitted. Your lender can tell you exactly what is required for your application.
Does being an LLC owner make it harder to buy a house?
Not automatically. Your ownership percentage, business structure, income history and the way income appears on your tax returns can affect how the lender documents and calculates qualifying income.
Should I talk to a Realtor® or lender first?
You can talk with us at any point, but we strongly recommend getting the mortgage conversation started before seriously shopping for homes. We can help you coordinate the home-search side while your mortgage professional handles qualification and financing.
Buying a Home While Building a Business? You Have Options.
Owning your own business shouldn't make the idea of homeownership feel out of reach.
Sometimes the process simply requires a little more preparation.
Hinton Real Estate Group helps buyers throughout Ypsilanti, Ann Arbor and Washtenaw County understand the real estate side of the process, explore their options and make confident decisions without unnecessary pressure.
Ready to talk about buying a home?
Contact Hinton Real Estate Group at (734) 480-8650 or realtoronduty@teamhinton.com.
Hinton Real Estate Group
36 N. Washington St.
Ypsilanti, MI 48197
Updated September 2026. Mortgage qualification and documentation requirements vary by borrower, lender and loan program. Hinton Real Estate Group is providing general real estate information and is not making a loan approval determination.
