To qualify for a mortgage loan when self-employed, you’ll need to fill out the same application and meet the same requirements as regular salaried or hourly workers with a W-2 from their employer. The difference is that, you’ll also need to provide some additional documentation, which may include two years of employment verification and income documentation.

To calculate your monthly income, you’ll average your adjusted gross income (total income minus deductions) from the last two years of tax returns. Take your adjusted gross income from each form, add the two numbers together and divide by 24. While there are several factors that determine your eligibility, this simple equation will provide a rough estimate of the amount your mortgage lender will use for consideration of a mortgage loan.

To qualify for a mortgage loan when self-employed, you should be prepared to meet a variety of qualifying factors that can include credit score, down payment and debt-to-income ratio. You can strengthen your ability to qualify by taking steps to build and maintain a solid credit history and score prior to applying for a loan. If you’re a current U.S. Bank customer, you can monitor your credit for free with our tool. Getting a home loan when you’re self-employed is certainly possible, but you must be prepared for a slightly different mortgage process.