With mortgage rates stabilizing around 6% and non-QM loan options expanding, 2026 presents real opportunities for self-employed borrowers who come prepared. Here's what's changed and what you'll need.

What's New This Year

AI-powered verification now flags document inconsistencies instantly—ensure your tax returns and bank deposits align before applying.

Bank statement loans have gone mainstream, with major lenders now offering rates just 0.25%-1.0% above conventional. And with 57 million freelancers in the U.S., lenders have finally developed gig economy-friendly programs.

The biggest change? Properly prepared applicants can now close in 10-15 days.

Universal Requirements

All loan types require: two months of asset statements (checking, savings, investments), explanation letters for deposits over $1,000, proof of additional income sources, and a complete list of monthly debt payments.

Pro tip: Authorize digital bank connections through Plaid or similar platforms—it speeds verification by 7-12 days.

By Loan Type

Traditional Mortgages (Conventional, FHA, VA): Two years of personal and business tax returns, year-to-date P&L if applying after June, business license, and CPA letter if self-employed under two years.

Bank Statement Loans: 12-24 months of complete business bank statements, business license, letter explaining operations, and invoices or contracts supporting income. Never alter or redact statements—AI detects modifications instantly.

P&L Mortgages: CPA-prepared profit and loss statement for 12-24 months, CPA attestation letter, three months of bank statements for verification, and business formation documents.

1099 Loans (Gig Workers): 6-24 months of 1099 documentation, active contracts showing ongoing work, and 680+ credit score. Multiple income sources actually strengthen your application.

DSCR Loans (Investors): Rent rolls, operating expenses, property appraisal with rental analysis, and 6-12 months reserves. Warning: lenders are now actively detecting inflated rent estimates.

Red Flags to Address Upfront

AI underwriting automatically flags these issues—prepare explanations in advance:

NSF fees or overdrafts
Large irregular deposits without documentation
Declining year-over-year income
Discrepancies between tax returns and bank deposits (the #1 flagged issue)

Common Missing Items

Freelancers forget business insurance and mileage logs.

Consultants overlook subcontractor 1099s issued. Gig workers need platform earnings statements from Uber, DoorDash, or Airbnb.

Start With a Document Review

Before formally applying, schedule a pre-application meeting with Capital Direct Funding. We'll identify gaps, recommend the right loan program, and ensure you're fully prepared.

Strategy matters more than timing in 2026. The question isn't whether rates will drop—it's whether you're positioned to act.

Capital Direct Funding provides customized document checklists based on your specific situation.

Get your personalized checklist and start your mortgage journey prepared.

Self-Employed Mortgage Checklist: What You'll Need in 2026