I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. One year of self-employment is not an automatic disqualifier — it depends entirely on your industry background and which program fits your situation. Call (800) 239-1103.
Conventional wisdom says you need two years of self-employment history to get a mortgage. And for conventional Fannie Mae loans, that is largely true. But for non-QM loans, the picture is more flexible — and many California borrowers with just one year of self-employment have gotten approved.
Why Conventional Loans Want 2 Years
Fannie Mae guidelines require that self-employed income be documented over a two-year period to demonstrate stability. A single year could be a fluke; two years suggests a trend. Lenders average the two-year income figure and use that for qualification. If you have been self-employed for less than two years, most conventional lenders will decline the file or require you to use only the lower of the two years available — which for a brand-new business is often the startup year with low income.
When Non-QM Lenders Will Approve with 1 Year
Several non-QM lenders offer bank statement and P&L loans with just 12 months of self-employment history. The approval is more likely when you transitioned from W-2 employment in the same industry (an employee becoming a contractor), your bank statements show consistent or growing monthly deposits over the full 12 months, your credit score is 680 or higher, you have a larger down payment (20%+ reduces lender risk), and you have cash reserves of 6 months or more after closing.
The Transition Scenario
This is a common and favorable situation. A licensed nurse practitioner who worked for a hospital for 10 years and recently opened their own practice has 1 year of self-employment. A non-QM lender sees the industry continuity — same profession, same type of income — and weighs the 10 years of work history favorably alongside the 12 months of business deposits. This is a very strong file.
Contrast that with someone who left a completely unrelated job to start a new type of business. Without the industry track record, lenders want more time — usually 2 years of tax returns showing the business is viable.
What You Will Need
For a 1-year self-employment mortgage approval, expect to provide 12 months of business or personal bank statements, a business license or other proof the business is operating, a CPA letter confirming you are self-employed in this business, minimum 620 FICO (680+ preferred with 1-year history), and 10–20% down payment.
Your Next Step
Do not assume you are out of options because of limited self-employment history. Call me first. I will tell you which lenders will work with your timeline and what the approval criteria look like for your specific situation.
Related: Self-employed mortgage guide | Bank statement loans | 1099 loans for contractors
Frequently Asked Questions — Self-Employed 1 Year Mortgage California
Can I get a mortgage with only 1 year of self-employment in California?
Yes — through non-QM loan programs. Bank statement loans and P&L loans from non-QM lenders can approve borrowers with as little as 12 months of self-employment history, particularly when the borrower transitioned from W-2 employment in the same industry. Conventional Fannie Mae loans generally require 2 years, but non-QM portfolio lenders make their own credit decisions and many have 1-year programs for strong borrower profiles. Credit score (680+ preferred), down payment (20%+ ideal), and consistent bank statement deposits all improve your chances of approval with just 1 year of history.
What if I was a W-2 employee before going self-employed in the same field?
This is one of the strongest scenarios for 1-year self-employment approval. Lenders view industry continuity very favorably — a contractor who worked in the same field as an employee for years and recently went independent has demonstrated income-earning ability in that field. The self-employment is a change in business structure, not a career change. Non-QM lenders weigh your total work history in the industry alongside the 12 months of self-employment deposits. The longer and more established your prior W-2 career in the same field, the stronger the file.
What documents do I need for a 1-year self-employment mortgage?
For a bank statement loan with 1 year of self-employment, you’ll typically need: 12 months of business or personal bank statements (showing consistent deposits), a business license or other proof the business is actively operating, a CPA letter confirming your self-employment status and industry, minimum 620 FICO (680+ gives you access to better programs and rates), and 10–20% down payment. Some lenders also want a signed P&L prepared by a CPA covering the 12-month period. The stronger your credit, reserves, and deposit history, the more lender options open to you.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
