Mortgage  Question?
Qualify for mortgage self-employed less than two years

Are there mortgage options for borrowers with low credit scores who have been self-employed for less than two years?

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

Most conventional mortgage programs as well as the VA and USDA mortgage programs require a two year job history for self-employed applicants, as evidenced by the borrower's tax returns, to qualify for a mortgage. The employment history requirement for self-employed borrowers for a FHA mortgage; however, is more flexible. FHA mortgage guidelines permit a self-employment history of between one and two years "if the borrower was previously employed in the same line of work in which the borrower is self-employed or in a related occupation for at least two years." So in short, if your current self-employed job is in the same field in which you previously worked, then you may be able to qualify for the FHA Mortgage Program. Other factors such as the stability of your income also determine your eligibility. Additionally, an FHA loan requires a minimum credit score of only 580 so you may be able to qualify. An FHA mortgage enables you to buy a home with a low down payment and low mortgage rate. We provide a thorough overview of the FHA Mortgage Program on FREEandCLEAR for you to review.

We recommend that you contact multiple lenders to understand how they would handle your unique situation. You can review FHA lenders by clicking INTEREST RATES We advise you to contact at least four lenders as qualification guidelines vary. Plus, shopping multiple lenders is the best way to save money on your mortgage.

In addition to contacting lenders about an FHA mortgage you may also want to consider the NACA Mortgage Program. NACA is a not-for-profit organization that offers mortgage programs designed to make home ownership more attainable. The NACA Mortgage Program enables borrowers to purchase a home with no down payment and no closing costs. We provide a detailed overview of the NACA Mortgage Program on FREEandCLEAR and you can contact NACA by visiting the NACA web site.

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About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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