How Much Do I Need for a Down Payment If I'm Self-Employed?

Описание: One of the most common questions from self-employed borrowers: "Do I need a higher down payment because I'm self-employed?"

The answer: It depends on the loan program, NOT on whether you're self-employed.

CONVENTIONAL LOANS:
Same as W-2 employees: 3-5% down
First-time homebuyer: 3% down
Not first-time: 5% down
Catch: You still have to qualify based on your tax returns showing enough income

👉 How Lenders Calculate Self-Employed Income:    • Understanding Self Employment Requirements...  

FHA LOANS:
3.5% down for everyone (W-2 or self-employed)
Same catch: Must qualify based on tax return income

NON-QM / ALTERNATIVE DOCUMENTATION PROGRAMS:
Bank statement loans, 1099 programs: Typically 10% down minimum
Good credit (680-720): 10% down
Lower credit or other factors: Could be higher
Why higher? Lender takes on more risk without traditional tax return documentation

Reserve Requirements (Don't Forget This):
Non-QM programs require 6-18 months of reserves (cash in bank after closing)
Depends on credit score, investor, property type
This is ON TOP OF your down payment

INVESTMENT PROPERTIES:
Conventional: 15% down
FHA: Not available for investment properties
Bank statement/Non-QM: 15% down
Note: LTV, loan amount, and other factors can increase requirements

Bottom line: Down payment requirements vary by PROGRAM, not by employment type. Conventional/FHA: 3-5% (if you qualify on tax returns). Non-QM/Bank statement: 10%+ plus higher reserves.

Want to know what down payment you need for your specific situation? Call me at 562-484-1907

Salomon Chong
Co-Founder & Mortgage Consultant, NMLS #248755
The Mortgage Hub
Huntington Beach, CA & Frisco, TX