Definition
A self-employed person carries on an economic activity for their own account, not linked to an employer by a salaried contract. This includes: fee-based professional (doctor, lawyer, accountant, engineer, broker), business owner (corporation, principal owner), freelancer, consultant, artisan, Uber driver, Etsy seller.
Mortgage challenge: declared NOA income is often reduced by legal tax deductions (business expenses, depreciation, spouse salary), under-representing actual income. A lenders generally use the 2-year average of declared net income, with limited adjustments.
Dedicated programs: most B lenders and some A lenders (Sagen) offer "Business for Self" (BFS) or "Stated Income" programs allowing qualification on grossed-up income (e.g. gross income × 1.15) or bank deposits. Typical minimum down payment: 10-20%. Documents requested: 2-3 years of NOAs, financial statements, business account register, sometimes accountant's letter.