Hello, World!
How to Buy a Southlake Home if You're Self-Employed or a Small Business Owner
How do you buy a home in Southlake if you're self-employed or run your own business?
You'll need clean financial documentation, strong income verification, and a lender who understands how to structure mortgages for entrepreneurs — especially in a high-price market like Southlake. With guidance from Kallie Spencer (Ritchey), Broker/Owner of Ritchey Realty, the process becomes clearer and far more achievable.
Why buying a home in Southlake is different when you're self-employed
If you're self-employed — a real estate investor, consultant, contractor, 1099 professional, or small business owner — buying a home in Southlake takes more preparation. The "buy a home" process is the same at a macro level, but the documentation required and the way your income is evaluated works differently than for W-2 buyers.
Southlake's market adds another layer:
- Median home prices hover near the $1.3M range, depending on the neighborhood.
- Inventory is competitive, especially in areas feeding into Carroll ISD.
- Lenders scrutinize income stability closely at this price point.
This is where preparation — and an experienced Southlake agent like Kallie Spencer — makes a real difference.
Step 1 Get your income documentation organized early
Unlike W-2 employees, self-employed buyers must prove income consistency over time. Lenders typically require:
What lenders want to see
- Two years of personal tax returns
- Two years of business tax returns (LLC, S-Corp, partnership, etc.)
- Year-to-date profit and loss (P&L) statement
- Business bank statements
- Personal bank statements
Lenders look at net taxable income, not gross revenue — which can surprise business owners who heavily write off expenses.
Step 2 Know how lenders calculate your qualifying income
Most lenders average your last two years of income, but depending on your business:
- If income is stable or increasing → they may use a two-year average.
- If income increased significantly → they may allow one year of returns.
- If income decreased → they will use the lower year, or deny the loan if the drop is steep.
Understanding this early helps you set realistic expectations for your Southlake home budget.
Step 3 Explore loan types that work well for entrepreneurs
Some loan programs are friendlier to self-employed buyers:
Conventional Loans
Most common option. Strong credit history and debt-to-income ratio are important.
Bank Statement Loans
Ideal if tax write-offs reduce your taxable income. Uses 12–24 months of bank deposits to calculate income.
1099-Only Loans
For independent contractors or commission-based professionals.
Portfolio Loans
Local banks or credit unions may offer flexible options for high-income business owners with non-traditional financial profiles.
A seasoned lender will recommend the best fit for your situation.
Step 4 Strengthen your financial profile
Because Southlake homes require higher loan amounts, lenders will expect:
- Higher credit scores — typically 700+ for best rates
- Lower debt-to-income ratio — aim for below 43%
- Documented savings for reserves, down payment, and closing costs
Pro tip: If you plan to buy within 12 months, avoid:
- Large purchases
- New business loans
- Changing business structure
- Amending past tax returns
These changes can temporarily disrupt qualifying.
Step 5 Understand Southlake price dynamics for self-employed buyers
Self-employed buyers face two unique challenges in Southlake:
1. High price points require stronger documentation
Homes are often $1M+ and may require jumbo financing. Jumbo loans have stricter guidelines.
2. Competition favors buyers who move quickly
If your paperwork isn't ready, another buyer will beat you to the home — even if you're financially stronger.
This is where Kallie Spencer's local experience matters. She coordinates with lenders early, flags potential documentation gaps, and positions your offer to look competitive even if your financial picture is complex.
Step 6 Work with Southlake-experienced lenders
Not every lender understands how to evaluate business-owner income accurately.
Kallie can connect you with lenders who specialize in:
- VA loans for entrepreneurs with military backgrounds
- Bank-statement qualification
- Jumbo financing
- Complex tax structures
These partnerships help prevent unnecessary denials or delays.
Step 7 Prepare for a competitive offer strategy
Here's what boosts your strength as a self-employed buyer:
- Full pre-approval, not pre-qualification
- Proof of reserves (often required for jumbo)
- Clean, well-organized documentation
- Flexibility on closing timelines
- A strong agent who communicates clearly with the listing side
If you're competing in neighborhoods like Timarron, Carillon, or Southlake Woods, preparation is key.
Step 8 Consider your long-term financial structure
Southlake homes often appreciate well, meaning your purchase is not just lifestyle — it's an asset.
Before you commit:
- Review the impact of high-end property taxes
- Understand ongoing business income stability
- Confirm your comfort with payment fluctuations if choosing an ARM loan
- Discuss your 5- to 10-year plan with your financial advisors
And most importantly: buy at a level that aligns with both your business cycles and your personal goals.
Why working with Kallie Spencer (Ritchey), Broker/Owner at Ritchey Realty, makes buying easier
Self-employed buyers face more steps, but with the right guidance, the process becomes manageable. Kallie brings:
- Experience helping business owners buy in Southlake's premium market
- Local relationships with lenders familiar with complex income structures
- Understanding of lot selection, neighborhood value, and resale strategy
- A tailored process that respects your schedule and financial complexity
Her goal: get you into the right home with confidence and clarity.
Conclusion
Buying a home in Southlake as a self-employed professional or small business owner is absolutely achievable — you just need preparation, the right lender, and a local expert guiding your search. With strong documentation and a proactive plan, you can secure a home that fits your lifestyle, business needs, and long-term financial goals.
If you're ready to take the next step, contact Kallie Spencer (Ritchey), Broker/Owner at Ritchey Realty, for guidance tailored specifically to self-employed buyers in Southlake.
Disclaimer: This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Consult appropriate licensed professionals for those matters.
Ready to Buy Your Southlake Home?
Get expert guidance tailored specifically to self-employed buyers in Southlake's premium market.
