Carl gave you a good answer. I'd like to add to it given the timing of our dreaded April 15th deadline looming right in front of us.
If you are self employed & you are not showing enough income to qualify for your loan because you write off all your business expenses, you also have the choice to NOT write off all of those expenses. This will show you have more income. You will need to put a pencil to paper to see where you need to be after talking to your licensed loan officer. Granted, you will more than likely have to pay more income tax to Uncle Sam, but in some instances, certain individuals may want to elect to show more income to qualify for a loan to take advantage of the current low home prices and low interest rates.
Hope that helps a little,
Ros
Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time. - Fri Apr 1, 2011