Self‑Employment Income Guidelines
How Lenders Review Self‑Employment Income
Lenders evaluate self‑employment income by reviewing tax returns, business stability, and the consistency of your earnings. They look for reliable income that is likely to continue for at least three years.
Required Documents for Self‑Employed Borrowers
Most lenders require two years of personal tax returns, two years of business tax returns, year‑to‑date profit and loss statements, and business bank statements to verify income and stability.
How Lenders Calculate Your Qualifying Income
Lenders average your net income from the last two years of tax returns. They may add back certain deductions like depreciation but subtract expenses that reduce your actual income.
Factors That Can Affect Approval
Declining income, new businesses with less than two years of history, or large write‑offs can reduce the amount you qualify for or require additional documentation.
See Your Self‑Employed Loan Options
Find out which mortgage programs work best for self‑employed borrowers and business owners.
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