Self-employed borrowers can absolutely qualify for a mortgage. Typically, lenders review two years of tax returns and calculate income based on net profit after business expenses. The biggest misconception is that strong revenue equals strong qualifying income. What matters is what remains after deductions. Today there are also alternate programs for self-employed people who don’t report enough income on their taxes. Many times these programs are based upon how much money you deposit into your bank monthly. Speak with your loan officer about these alternate programs if your tax returns seem too low to be able to qualify for house.
Please consult your Mortgage Advisor for guidance specific to your situation before making changes.
