Mortgage Financing for Self-Employed Contractors in Augusta, Georgia

Scan the guides linked below, find the one that matches your income documentation situation—bank statements, 1099s, DSCR, or full tax returns—and follow it straight to the lender checklist. If you're not sure which path fits, the orientation below will tell you.

What to know before you choose a loan path

Most Augusta contractors run into the same wall: taxable income on Schedule C or an S-corp return is a fraction of actual cash flow because of legitimate equipment, vehicle, and subcontractor write-offs. Conventional underwriting reads that low number and declines the file. Non-QM and alt-doc mortgage products exist specifically to solve that problem—but each one has different price, reserve, and documentation requirements, and picking the wrong one costs you time and money.

The four main options for contractors with 1099 or business income

Bank statement mortgage Lender uses 12 months of personal or business deposits to calculate income—write-offs are irrelevant. This is the most common path for Augusta construction business owners with healthy revenue but low AGI. Expect a rate that runs 1–2 percentage points above a conventional 30-year fixed, and plan to show 6–12 months of liquid reserves after closing. The same documentation strategy works for freelance mortgage solutions across a range of self-employed income types, not just construction.

1099-only mortgage Some non-QM lenders will average two years of 1099s without requiring full business returns. Useful if your gross 1099 income is strong but your Schedule C has significant deductions. FICO floor is typically 660–680; down payment runs 10–20% depending on the lender.

DSCR (Debt Service Coverage Ratio) loan If you're buying an investment property—a rental house, a small multi-family—rather than a primary residence, DSCR loans qualify you on the property's rent income, not yours. No personal income docs required. Down payment is usually 20–25%, and lenders want the property's gross rent to cover at least 1.0–1.25x the monthly payment.

FHA with full returns If your tax returns show enough qualifying income (after write-offs) to hit a debt-to-income ratio under 43–50% of gross monthly income, FHA can work—3.5% down at 620 FICO. The tradeoff is mortgage insurance premium for the life of the loan on most FHA files and stricter property condition requirements, which matters in some Augusta neighborhoods with older housing stock.

What trips contractors up

• DTI math on conventional/FHA: Lenders use the net income line on Schedule C, not gross revenue. A contractor doing $180,000 in revenue who writes off $120,000 qualifies on $60,000—about $5,000/month. That's often not enough for the home price they're targeting.
• Two-year self-employment rule: Fannie Mae and FHA both want 24 months of self-employment history documented by returns or a CPA letter. Non-QM lenders sometimes accept 12 months if the business type matches prior W-2 history.
• Reserves: Non-QM lenders are serious about post-closing liquidity. Six to twelve months of mortgage payments sitting in a verifiable account is the standard ask—contractors who move cash through the business account and leave personal accounts thin get declined even with strong income.
• Credit score band: A 700+ score opens the widest lender pool and best pricing. The 640–679 band is workable but adds 2–4 percentage points to your rate on non-QM products. Roughly 1 in 5 credit reports contain errors—pull yours before you apply and dispute anything inaccurate.
• Closing timeline: Budget 30–45 days for a non-QM close, slightly longer if the appraiser has questions about the property or your income documentation needs a CPA letter.

Contractors in markets like Albuquerque, NM and Alexandria, VA face the same documentation hurdles, so the strategies here translate directly if you're working across state lines or considering a relocation. Good tax planning before you apply also matters: keeping a clear separation between business and personal deposits—and understanding how quarterly estimated payments affect your cash position—can make or break your qualifying income picture; a solid payment planning strategy for 2026 is worth reviewing before you sit down with a lender.

Choose your situation from the guides below and start there.