Can self-employed borrowers get a conventional loan?
Yes. Conventional accepts self-employment income with two years of personal and business tax returns showing stable or improving net income. Year-over-year declines reduce qualifying income; less than two years of self-employment rarely qualifies on conforming.
What this actually means.
Standard documentation: two years of personal returns, two years of business returns (Schedule C, K-1, 1120/1120-S as applicable), year-to-date P&L if more than a few months past the last full year, and a CPA letter on some lenders. Net income matters — gross does not qualify. Recent business changes (entity restructure, new partner, expansion costs) get scrutiny. Bank-statement loans and other non-QM products serve borrowers who don't fit standard conventional documentation. Subject to Fannie/Freddie guidelines.
Where this can move.
Documentation type, employment stability, year-over-year trends, and any recent job/business changes can change the answer.
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More conventional questions on Income.
Educational only. Conventional loan guidelines, lender overlays, rates, fees, PMI, LLPAs, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with Fannie Mae, Freddie Mac, FHFA, or any government agency.