Self-Employed Mortgage Affordability Calculator
Estimate 2026 mortgage affordability from 1099/Schedule C income using 2-year averaging and common lender add-backs, for bank-statement and full-doc loans.
Estimated maximum mortgage
$185,625
Recognised annual income$41,250
Max loan from income multiple$185,625
This is an estimate only. Actual lending criteria, income-recognition rules and affordability stress tests vary by lender — speak to a mortgage broker or lender for a precise figure.
Mortgage Affordability for 1099 and Self-Employed Income
Lenders don't treat 1099 or Schedule C income the same way they treat a steady W-2 paycheck — most require a two-year average, and some use common add-backs (like depreciation) that can raise your qualifying income above what your tax return shows as net profit. This calculator works through those adjustments for the 2026 lending environment.
How self-employed mortgage qualification differs from W-2
- Most conventional lenders average your self-employed net income over the most recent two tax years rather than using a single year or your current run rate
- Certain non-cash deductions on your Schedule C — like depreciation — are commonly added back to your qualifying income, since they reduced your taxable profit without actually reducing your cash flow
- Bank-statement loan programs exist specifically for self-employed borrowers who don't want to qualify off tax-return net income, instead using deposits as a proxy for income — typically at a cost of a higher interest rate
- The federal income tax and self-employment tax figures this calculator applies elsewhere in the suite feed into what net income a lender is actually likely to count toward your debt-to-income ratio
