Good afternoon Kristen,
When you say "Self-Employed" does that mean you are filing a Schedule C on your Federal 1040 tax returns? OR, are you a shareholder (sole or otherwise) of a Corporation?
We qualify you different ways depending on the manner of your filing.
If you are a shareholder of a Corporation we'll review your W2 forms for the past two years and your current income from paystubs/company checks. We'll want to see the Corporate returns to determine the financial stability of the corporation and other items such as short-term liabilities. We'll also want to know your percentage of ownership/shares.
If you file a Schedule C here's how we calculate your qualifying income:
-Average 2010 and 2011 NET income after expesnses. In some instances we might add back "depreciation" costs or other "one-time" costs which therefore increases your bottom line net income.
-3 Years in business: typically we like to see you are in business as a Self-Employed person for at least three years (although quidelines only require 2, 3 tends to be the conservative qualifying "norm" amongst Underwriters)
If you have not already done so, get yourself in front of a Local Mortgage Banker with those tax returns to get yourself thoroughly prequalified. I gave you general guidance, but every person's qualifications are unique, so your Mortgage Banker will help you arrive at the correct qualifying number.
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker â€“ NYS Dept. of Financial Services