Yes, it can be, but it usually depends on more than just the length of time in business.
Many lenders prefer two years of self-employment history. However, some may consider a borrower with one year of accounts when the person previously worked in the same industry and can show stable income.
A stronger application usually includes:
- Consistent business deposits
- Good personal credit
- Low monthly debt
- Savings for the down payment and reserves
- A current profit and loss statement
- Proof that the business is active
- Previous experience in the same field
If tax returns show low income because of business deductions, a bank statement loan may be worth reviewing. These mortgage loans for self-employed borrowers can sometimes use 12 or 24 months of deposits instead of relying only on taxable income.
The borrower should also avoid applying with several lenders at once. A mortgage broker for self employed applicants can review the documents first and explain which lenders may accept a shorter business history.
One year in business does not always mean automatic rejection. The real question is whether the income looks stable, documented, and likely to continue.