Why Lenders Require This
Unlike W-2 employees whose employers can be verified with a phone call, self-employed borrowers must prove:- The business is real and operating
- You own or have a stake in the business
- The business has been operating long enough (typically 2 years)
Common Documentation Options
Lenders typically require one or more of the following: Business license — A license issued by your city, county, or state authorizing you to operate. Must be current and show the business name and your name as owner. Articles of incorporation or organization — Formation documents filed with the state when establishing a corporation or LLC. Shows ownership structure and formation date. Partnership agreement — For partnerships, the agreement outlining ownership percentages and partner names. DBA registration — “Doing Business As” or fictitious name registration if operating under a name different from your legal name. Professional license — For licensed professionals (real estate agents, contractors, CPAs), your state-issued professional license may suffice.What Lenders Look For
| Element | Why It Matters |
|---|---|
| Your name | Confirms you’re the owner |
| Business name | Matches bank statements |
| Formation/issue date | Proves length of self-employment |
| Current status | Business must be active, not dissolved |
| Ownership percentage | Confirms your stake in the business |
Sole Proprietors
If you operate as a sole proprietor without a formal business entity, you may provide:- Business license or DBA registration
- Professional license
- CPA letter confirming self-employment
- Two years of tax returns showing Schedule C (some lenders)