Purchase Loan Products
1 Year Self Employed Home Loans in Georgia
You left a W-2 job, went out on your own, and now every lender wants two years of tax returns you don't have. There's another path. Some programs will look at roughly one year of self employment when the work history behind it backs you up, documenting income with one year of returns, twelve months of bank statements, one year of 1099s, or a CPA prepared profit and loss statement.
It isn't automatic and we won't pretend it is. But if you've been told to wait two years, that advice may be incomplete.
Based in Atlanta. Working with self employed buyers across Georgia.
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Custom Pricing
See What You Qualify For as a Newly Self Employed Buyer
Programs that consider a shorter history are priced by scenario, not off a public rate sheet. Tell us how you earn and how long you've been doing it, and we'll tell you which paths are open to you.
A quote is not an approval, preapproval, rate lock, or commitment to lend. Programs that consider less than a full two year history are reviewed case by case, and no page can tell you in advance that you qualify. Pricing and eligibility vary by borrower, property, documentation type, and transaction.
- What to expect: a short conversation about how you're paid, when you went self employed, and what you did before.
- What you'll see: which documentation paths fit your income and what each would require.
- What comes next: an honest read on whether your file is ready now or whether a few months makes it much stronger.
- What we won't do: push you into alternative documentation when a conventional or FHA loan would serve you better.
Your Scenario, Reviewed Properly
Self employment income doesn't fit a dropdown menu. Tell us what your last two years looked like and we'll map it to your options.
See What I Qualify For- No impact to your credit score
- No hidden cost
- No commitment
Is This You
Buyers Who Often Consider a 1 Year Self Employed Loan
One thread runs through every profile below: the work came first, the self employment second. That prior history is what gives an underwriter something to stand on when the business is still young.
Owner operator truck drivers
You drove for a carrier on a W-2 for years, then bought your own truck and got your authority. Long driving experience, new business. Exactly the shape these programs were written for.
Travel and contract nurses
You worked staff at a hospital, then moved to agency assignments paid on a 1099. Same work, same license, different pay structure. Your prior staff employment is part of what an underwriter reviews.
Contractors and consultants who went 1099
Your employer converted your role to a contract, or you moved to contract work in the same field. Same company, same position is the cleanest version of this file.
Licensed professionals who opened a practice
Hygienists, therapists, attorneys, and accountants who spent years employed before hanging a shingle. Formal education and licensure carry real weight here.
Skilled trades who went out on their own
Electricians, HVAC techs, plumbers, and general contractors who worked for a company first. Industry specific training and a documented work history are exactly what this review looks for.
Stylists and barbers who went booth rent
You moved from a paycheck to renting your own chair or opening a shop. Deposits can tell that income story when tax returns don't cover enough time yet.
Owners whose returns understate their income
Not everyone here is newly self employed. Some have been in business for years but write off enough that returns don't reflect real cash flow. Bank statement and P&L documentation fit better than full doc.
Buyers who were told to wait two years
If a lender told you to come back in a year without asking what you did before, you got a fast answer rather than a complete one. It may still be the right answer.
Recognizing yourself above does not mean you qualify. Programs that consider less than two years of history are reviewed case by case, and eligibility depends on documented prior experience, income documentation, credit, assets, the property, program availability, and full underwriting.
An Honest Look
When a 1 Year Self Employed Loan May Not Be the Right Fit
If you can document two years of self employment income the ordinary way, a standard conventional or government loan is usually the better deal, and we'll tell you so.
Alternative documentation solves a documentation problem. If you don't have that problem, don't pay to solve it. Another path deserves the first look when:
- You have two years of returns showing enough income. Start with conventional or FHA and come back only if the numbers don't work.
- Your self employment is under twelve months. These programs generally need a full twelve months documented before there's anything to review, so a few more months may change everything.
- You went self employed in a completely different field. The case for a shorter history rests on prior experience supporting the new business, and without that connection it's much harder.
- Your down payment is the constraint rather than your documentation, since these programs expect more down than FHA does.
- You're eligible for a VA loan, which has its own self employment rules and benefits worth exploring first.
- Your credit sits below where these programs start and a few months of work would move it. That usually pays better than a workaround.
- You're buying an investment property and the rent covers the payment, so a DSCR loan sidesteps the history question entirely.
Options worth comparing instead
- Conventional loans, when you can document income the standard way and want the most competitive terms.
- FHA loans, when credit or down payment flexibility matters more than documentation flexibility.
- VA loans, if you're an eligible service member, veteran, or surviving spouse.
- Self employed loans, our broader page for owners with a longer track record.
- DSCR investor loans, when you'd rather qualify on rental cash flow than personal income.
- First time buyer loans, if this is your first purchase and you want every program side by side.
The Full Picture
Potential Benefits, Weighed Against Real Considerations
These programs open a door a two year documentation rule closes, and measure income in a way that reflects your actual business. In exchange, expect more money down, closer scrutiny, and portfolio pricing rather than agency pricing.
Potential benefits
- A history under two years may be considered when prior experience, training, or education in the same field supports it.
- Four documentation paths: one year of returns, twelve months of bank statements, one year of 1099s, or a CPA prepared P&L.
- Bank statement documentation looks at deposits rather than net taxable income, better reflecting a business that writes off aggressively.
- Moving from W-2 to 1099 with the same company in the same role is the most straightforward version of this file.
- Credit generally starts at a 660 score.
- Primary residences, second homes, and investment properties may all be eligible.
- Purchase, rate and term refinance, and cash out are generally available.
Important considerations
- A shorter history is reviewed case by case. It's never automatic, and a strong file can still be declined.
- Plan on at least 20 percent down. Financing generally starts around 80 percent of the price, with more reserved for stronger credit profiles.
- Without a full twelve months of income documented, there's generally nothing to review yet, no matter how strong your prior experience.
- Portfolio and non-QM pricing typically runs higher than comparable conventional or government financing.
- Reserves are commonly required: money left over after closing, not every dollar into the down payment.
- If you're paid 1099 by a single company, bank statement documentation generally isn't available to you.
- A significant income decline must be documented as stopped or reversed before a higher figure can be used.
- Documentation is lighter in kind, not effort. Expect letters of explanation, proof of ownership, and sourcing of unusual deposits.
This section is educational. It is not a statement that this financing is better or worse than any other option, and not a determination of what you qualify for. Program terms and guidelines vary by lender and change over time.
Compare Your Options
How a 1 Year Self Employed Loan Compares With Other Paths
All four can finance a home for a self employed buyer. They differ on how much history they want and what they accept as proof of income.
| Criteria | 1 Year Self Employed | Conventional (Full Doc) | FHA Loan | 24 Month Bank Statement |
|---|---|---|---|---|
| Best suited for | About a year in, with prior experience in the field. | Two full years of returns showing enough income. | Down payment or credit flexibility. | Returns understate real cash flow. |
| History expected | Under two years, case by case, twelve months documented. | Two years, exception in some cases. | Two years, with agency exceptions. | Generally two years. |
| Income documentation | One year of returns, twelve months of statements, 1099s, or a CPA P&L. | Two years of returns plus a YTD P&L. | Standard agency documentation. | Twenty four months of statements. |
| Occupancy | Primary, second home, or investment. | All types, subject to program rules. | Primary residence only. | Typically all types. |
| Credit considerations | Generally starts at a 660 score. | Set by agency guidelines. | Most flexible of the four. | Similar to other alt doc programs. |
| Down payment | At least 20 percent. | Well below 20 percent with MI. | Lowest of the four for eligible buyers. | Similar to other alt doc programs. |
| Mortgage insurance | Not typically applicable. | Required above 80 percent, cancellable. | Required, upfront and annual. | Not typically applicable. |
| Primary advantage | You may not have to wait two years. | Best terms when income is documentable. | Credit and down payment accessibility. | Deposits tell the story, not the tax return. |
| Potential tradeoff | Portfolio pricing, more down, case by case. | Write offs that cut taxes also cut qualifying income. | MI, property standards, primary residence only. | Needs two years of statements. |
| When another option may fit better | When two years of returns support the loan. | When returns don't reflect cash flow. | Investment property, or a larger loan. | When self employment is about a year old. |
Best suited for, and history expected
1 Year Self Employed: About a year in with prior experience in the field. Under two years, case by case, twelve months documented.
Conventional full doc: Two full years of returns, with a documented exception in some cases.
FHA: Down payment or credit flexibility. Two years generally, with agency exceptions.
24 month bank statement: Returns understate cash flow. Generally two years.
Income documentation
1 Year Self Employed: One year of returns, twelve months of statements, one year of 1099s, or a CPA P&L.
Conventional full doc: Two years of returns plus a year to date P&L.
FHA: Standard agency documentation.
24 month bank statement: Twenty four months of statements.
Occupancy, credit, down payment, MI
1 Year Self Employed: Primary, second home, or investment. Starts at 660, at least 20 percent down, MI not typical.
Conventional full doc: All types, credit per agency guidelines, can be well below 20 percent with cancellable MI.
FHA: Primary only, most credit flexible, lowest down payment, MI upfront and annual.
24 month bank statement: Typically all types, similar to other alt doc programs.
Advantage and tradeoff
1 Year Self Employed: No two year wait, but portfolio pricing and more down.
Conventional full doc: Best terms, but write offs cut qualifying income too.
FHA: Most accessible, but MI and primary residence only.
24 month bank statement: Deposits tell the story, but needs two years of them.
When another option may fit better
1 Year Self Employed: When two years of returns already support the loan.
Conventional full doc: When returns don't reflect cash flow.
FHA: Investment property, or a larger loan amount.
24 month bank statement: When your self employment is only about a year old.
Most self employed buyers have never seen these four side by side. Run against your real numbers, that comparison is usually the whole conversation.
Your Path
How the 1 Year Self Employed Loan Process Works
What decides this file happens in the first two steps, well before an appraisal or a contract, which is why the first conversation matters more here than on a standard loan.
Discuss your goals and timeline
What you want to buy, what you can put down, and when. Then the question that decides this file: when did you go self employed, and what were you doing the two years before?
Build the history case and pick a path
This step doesn't exist on a standard loan. We map your prior W-2 work, training, or licensing onto your current business, then choose the documentation path that reflects your income best.
Review income and get preapproved
We calculate qualifying income from that path, review credit and assets, and issue a preapproval you can shop with. You'll know your number before you fall in love with a house.
Find the home and go under contract
With a preapproval that already accounts for how you earn, you make offers like any other buyer. We tell your agent what the file needs so nothing surprises anyone at contract time.
Underwriting, appraisal, verification
Expect questions: sourcing a deposit, explaining a slower month, confirming ownership percentage. Fast, complete answers are the biggest thing you control.
Clear to close and closing
Once conditions clear you receive your Closing Disclosure, review final terms, and sign with a closing attorney, since Georgia is an attorney closing state.
Timelines vary by transaction, documentation type, property, and how quickly requests come back. Nothing here is a guarantee of approval, a closing date, or any particular loan terms.
Be Prepared
Documents You May Need
You won't need all of this. You'll need one income path plus the standard items every purchase requires. Find the one that matches how you're paid and ignore the rest.
Path 1: One year of tax returns
- Most recent personal return with all schedules
- Business returns for the same year
- A signed year to date profit and loss statement
- Bank statements supporting the sales on that P&L
- Verification the business is active
- A gap year P&L if an extension left a gap
Path 2: Twelve months of bank statements
- Twelve consecutive personal or business statements
- Proof of your ownership percentage
- A short written description of what your business does
- Sourcing for unusually large or one off deposits
- A tax preparer letter where the program calls for one
- Send tax returns only when asked, since filing them into a bank statement file can make it ineligible
Path 3: One year of 1099s
- 1099 forms covering the most recent year
- Tax transcripts corresponding to that income
- Contract or employer confirmation on job related expenses
- Documentation showing year to date earnings
- Context if you receive multiple 1099s
Path 4: CPA prepared P&L
- A twelve month P&L signed by a CPA, enrolled agent, or equivalent credentialed preparer
- Documentation of your ownership percentage
- Business license, state filing, or equivalent
- Supporting bank statements where validation is required
Proving the history behind the business
- W-2s or employment history from before you went out on your own
- Licenses, certifications, or a CDL
- Diplomas or training records where education applies
- Your contract if you moved from W-2 to 1099 with the same company
- A written explanation connecting prior experience to the business
Everything else a purchase requires
- Checking, savings, investment, and retirement statements
- Documentation and a gift letter for any gift funds
- Government issued photo identification
- Executed purchase contract and any amendments
- Homeowners insurance quote or binder
- Mortgage statements and leases for property you own
Not every borrower needs every item. This is a preparation guide, not a final list of conditions. Requirements come from the program, the path chosen, and underwriting of your file.
Reserves: the requirement most self employed buyers don't see coming
Reserves are funds still in your account after closing, measured in months of your new housing payment. Not the down payment, not closing costs.
Alt doc programs commonly require them, and the requirement grows with the loan amount. Retirement and investment accounts usually count, so many buyers have more than they realize. Gift funds generally do not count toward reserves even when allowed for the down payment.
If you planned to put every available dollar into the down payment, tell us early. It often changes the target price, and adjusting before you're under contract is far easier.
Real World Context
Three Common Borrower Scenarios
Three Georgia buyers, three documentation paths, three answers. The deciding factor is never how long the business has existed. It's how well the work before it lines up with the work now.
The owner operator in Henry County
The situation
Marcus drove for a regional carrier on a W-2 for five years, then bought his own truck fourteen months ago, running freight out of the McDonough corridor.
Why this may be considered
A two year rule shuts him out. But he has twelve months of business bank statements showing consistent settlement deposits, a CDL, and five years of W-2 driving behind him.
What still needs review
Deposits have to be separated from transfers and loan proceeds, and equipment financing in a startup year eats down payment and reserves fast.
When another program could fit
If last year's return shows enough income on its own, full documentation is the better deal. If he's short on down payment, a few months of saving beats a workaround.
The travel nurse in DeKalb County
The situation
Simone spent six years as a staff RN at an Atlanta hospital, then moved to agency contract assignments thirteen months ago. Same work, same license, paid on a 1099.
Why this may be considered
One year of 1099s documents the income, and six years of W-2 nursing is exactly the prior experience these programs look for. Georgia's Nurse Licensure Compact participation is why her work is so portable.
What still needs review
The part that surprises people: paid 1099 by a single agency, she generally can't use bank statements. Whether her contract makes her responsible for job related expenses also changes how income is calculated.
When another program could fit
If she takes a staff position again, conventional financing likely reopens with better terms, and her staff history would support it quickly.
The software contractor in Gwinnett County
The situation
Andre was a W-2 developer at a Duluth company for four years. Eleven months ago they converted his role to a contract. Same desk, same team, now paid on a 1099 through his own LLC.
Why this may be considered
The cleanest version of this file. A borrower who moved from W-2 to 1099 while contracted by the same employer in the same position may not need two years of 1099s, provided the contract documents that he isn't carrying additional business expenses.
What still needs review
The contract has to say what it needs to about expenses, and his LLC ownership needs documenting. A full twelve months of income is generally needed, so month eleven may be too early.
When another program could fit
If he waits for his first full tax year to be filed, conventional financing may open with better pricing.
These scenarios are illustrative and fictional, offered as education only. They are not rate quotes, preapprovals, approvals, or predictions of any borrower's outcome. Every file is underwritten on its own facts.
Local Guidance
Self Employed Loan Guidance for Georgia and Atlanta Metro Homebuyers
Georgia has one of the highest concentrations of self employed workers in the country, and Metro Atlanta holds most of them.
Georgia is a self employment heavy state
The Census Bureau counted 1,163,944 nonemployer businesses in Georgia in 2023, meaning no payroll beyond the owner, with about 769,826 in the Atlanta metro. If you feel like an exception to the mortgage system, you aren't. You're part of the largest group of workers most lenders are worst at underwriting.
Trucking and logistics run through Metro Atlanta
Transportation and warehousing is Georgia's largest nonemployer sector at 143,570 businesses in 2023, with 102,962 in the Atlanta metro. Georgia DOT reports trucks carry more than 80 percent of the state's freight tonnage, and Atlanta holds roughly 600 million of Georgia's 900 million square feet of warehouse space.
Nursing and contract healthcare work
Georgia had roughly 113,556 actively licensed registered nurses in 2023, and participates in the Nurse Licensure Compact, which lets a Georgia multistate license be used in other compact states without a separate license. That's a structural reason travel and contract nursing is so common here.
Atlanta's contracting workforce
Professional, scientific, and technical services accounted for 101,508 nonemployer businesses in the Atlanta metro in 2023, plus 11,878 in information. Consultants, developers, and specialists working for themselves, many W-2 employees at an Atlanta company a year ago. That prior employment is often the strongest part of their file.
Loan size across Metro Atlanta
For 2026 the conforming loan limit for a one unit property is $832,750, and every Georgia county sits at that baseline with no high cost counties. Most purchases in Fulton, Cobb, Gwinnett, DeKalb, Douglas, Paulding, Clayton, and Henry County fall well under it, though higher priced north side homes can approach it, which changes which programs are open to you.
Buying elsewhere in Georgia
Savannah, Augusta, Columbus, Macon, Athens, and the coastal and mountain communities each have their own price dynamics, but the self employment question doesn't change shape. The review of your prior experience is the same conversation in Chatham County as in Cobb.
Before you tour a single house, find out which documentation path fits. Talk with a loan expert and we'll map it out.
Good Questions
1 Year Self Employed Loan Questions, Answered Plainly
Can I get a mortgage with only 1 year of self employment?
It may be possible. A history of less than two years but more than one can be considered case by case when your file shows strong previous experience in the field, industry specific training, and a work history supporting the new business. It's a review, not an automatic approval, and it generally requires a full twelve months of self employed income documented in an acceptable form.
Do I really need 2 years of tax returns to buy a house?
Not always, and it isn't absolute even in conventional lending. Fannie Mae's Selling Guide allows a borrower with less than two years of self employment to be considered when the most recent returns reflect a full twelve months of self employment income and the file documents prior income at the same or greater level, either in a field providing the same products or services or in an occupation with similar responsibilities. Programs outside agency lending have their own versions of that exception.
I went from W-2 to 1099 in the same field. Does that help?
Significantly. It's the exact profile these programs were built around. The strongest version is being contracted by the same employer in the same position you held as an employee, in which case some programs don't require two years of 1099s, provided documentation such as a contract shows you aren't responsible for additional business expenses. Same industry but a different company generally means being in your current position at least a year.
What credit score do I need for a 1 year self employed loan?
These programs generally start at a 660 credit score. That's the floor, not the target. Stronger credit reaches better financing levels and pricing, and the requirement interacts with loan size and down payment. Your result depends on full underwriting.
How much do I need to put down?
Plan on at least 20 percent. Financing generally starts around 80 percent of the purchase price, with more available to stronger credit profiles on smaller loan amounts. If a low down payment is your main constraint rather than your documentation, an FHA loan is usually the better first conversation.
What is a bank statement loan and would it work for me?
It calculates qualifying income from deposits into your personal or business account rather than net income on your return, which works well when legitimate write offs make your return look smaller than your cash flow. Two limits: passive income like rents and capital gains generally isn't eligible, and if you're paid 1099 by a single company you generally can't use bank statements at all.
I'm a travel nurse paid on a 1099. What documentation do I use?
Usually one year of 1099s rather than bank statements, because a borrower paid 1099 by a single company generally isn't eligible for bank statement qualification. You'd provide 1099s, tax transcripts, documentation showing year to date earnings, and your contract or employer confirmation about job related expenses, which affects how income is calculated. Multiple 1099s from different agencies is common in healthcare and generally workable.
I'm an owner operator truck driver. Can I buy a house?
Often yes, and your years driving on a W-2 before you bought your truck are a real asset here. Twelve months of business bank statements showing consistent settlement deposits is a common path. Expect underwriting to separate freight revenue from transfers, loan proceeds, and factoring advances. Down payment and reserves are usually the tighter constraint in the first year or two.
Can I use this loan for an investment property or a second home?
Primary residences, second homes, and investment properties may all be eligible depending on the path, though terms differ by occupancy and investment financing requires more down. If the rent would cover the payment, also look at a DSCR loan, which qualifies on the property's cash flow and sidesteps the history question entirely.
What are reserves and why does this program want them?
Reserves are funds left over after closing, measured in months of your new housing payment. Alt doc programs commonly require them because self employed income is less predictable than a salary, and the requirement grows with the loan amount. Retirement and investment accounts generally count, but gift funds generally cannot. Ask early, because this is the requirement that most often changes someone's target price.
Is a 1 year self employed loan more expensive than a regular mortgage?
Generally yes. These are portfolio and non-QM loans, and pricing runs higher than comparable conventional or government financing because the lender takes on risk agency guidelines wouldn't. The right question isn't whether it costs more than a loan you can't get. It's whether buying now at this cost beats waiting a year. Sometimes waiting wins, and we'll say so when it does.
Does UHome Mortgage work with self employed buyers outside Atlanta?
Yes. We're based in Atlanta and work with buyers across all of Georgia, from Metro Atlanta to Savannah, Augusta, Columbus, Macon, and Athens. Wherever you're buying, we can review how you earn and tell you which documentation paths are open to you.
