Most conventional loans look for about two years of self-employment history in the same field. Shorter histories can still work when you have related W-2 experience and strong documentation.
Guidelines start at roughly two years, but related experience can bridge a shorter gap.
Two years of self-employment documented on tax returns is the cleanest path for conventional approval.
If you were a W-2 employee in the same field before going independent, that history often counts toward the two-year story.
Continuity of occupation matters more than keeping the same business name or EIN forever.
A shorter history with rising income is stronger than two years of steep decline.
Strong credit, larger down payment, and reserves can help borderline employment timelines.
These patterns commonly pass conventional underwriting when documents are complete.
Do not assume you must wait — run the file early so you know the realistic timeline.
Sometimes waiting for one more tax year unlocks a much higher purchase price.
Step 1
We line up W-2 years, 1099 years, and business entity changes on one timeline.
Step 2
We estimate what underwriting will use once the next return is filed.
Step 3
Apply now with current income, or wait for a stronger tax year — you decide with numbers.
Step 4
Shop with a letter that matches the employment story underwriting will accept.
Related guides to help you compare options and move toward pre-approval.
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It is the standard expectation. Some files with one year of self-employment plus prior related experience can still qualify with strong compensating factors.
Yes if you can document income through tax returns and show continuity in the same line of work.
A new entity alone is not enough. Lenders care about how long you have been earning in that occupation — even if the legal structure is new.
A CPA letter can support the file, but it usually does not replace the need for tax returns and a clear work history.
Share your work timeline and last two tax years — we will tell you if conventional is ready now or needs a short wait.