Getting a conventional loan as a self‑employed borrower in Virginia follows the same basic rules as for any other applicant, but the documentation and some state‑specific practices require extra attention.

Credit score and down payment

Most conventional lenders look for a credit score of at least 620. A higher score can improve your rate and may lower the required down payment. Conventional loans generally allow you to put down as little as 3% of the home’s price, though putting down 20% eliminates private mortgage insurance (PMI).

Income documentation for the self‑employed

Lenders need to verify that your business income is stable and sufficient to cover the mortgage. The typical requirement is:

• Two full years of filed federal tax returns (Form 1040) that include Schedule C, Schedule E, or the appropriate corporate return.
• Profit‑and‑loss (P&L) statements for the most recent 12‑month period, prepared by a CPA or using reliable accounting software.
• Balance sheets for the same period, if your business has significant assets or liabilities.

These documents let the lender calculate your average net income and assess any trends in earnings.

Debt‑to‑income ratio and reserves

The debt‑to‑income (DTI) ratio measures monthly debt payments against gross monthly income. Conventional loans usually require a DTI of 45% or lower, though some lenders may stretch to 50% with strong compensating factors. Because self‑employment income can be variable, lenders often like to see cash reserves equal to two or three months of mortgage payments.

Virginia‑specific considerations

• Conforming loan limits in Virginia are $726,200 for most counties; designated high‑cost areas (e.g., parts of Northern Virginia) have a higher limit of $1,089,300.
• Many Virginia transactions involve an attorney at closing, which can affect timing and add attorney fees to your closing costs.
• The Virginia Housing Development Authority (VHDA) runs a first‑time homebuyer assistance program that can provide down‑payment grants or low‑interest loans, and these funds can often be combined with a conventional loan.

Closing and next steps

After you gather your documentation, a lender will run a pre‑approval to estimate how much you can borrow. Once you find a property, the lender will order an appraisal, verify the paperwork, and move toward final approval. In Virginia, the closing attorney or title company will prepare the settlement statement and handle the transfer of title.

This article provides general information and is not personalized advice. You should consult a qualified mortgage professional or financial advisor to discuss your specific situation.