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It's nice to be your own boss and determine your own destiny. However, there may be some disadvantages to generating your own income when it comes to applying for a home loan.

Here's what lenders are looking for approval:

1. Enough Net Income shown on Tax Returns to qualify for the last 2 years obtain directly from the IRS - Form 4506-T (see special program below).
2. If income decline by less than 20% from prior year, lender may qualify based on the higher income and a year-to-date profit and loss statement from an accountant.
3. A copy of business license, or website address or letter from an accountant stating how long has the business existed.
4. 2 years self-employment requirement may be waived (depending on lenders) if prior W2 employment  is in the same field.

Nowadays,  self-employed people with 800 FICO and $1 million in the bank will not be abe to obtain mortgage financing if they do not have qualifiable income.  Although, if you have at least 20% as down payment - we have a special program that only uses only 1 year's Tax Return for income qualification. Please inquire.