Can I use self-employed income for FHA?
Yes. FHA usually wants 2 years of self-employment history and 2 years of personal and business tax returns.
Plain-English explanation
Income is calculated from net (post-deduction) tax-return income, not gross deposits. A 1-year history may work if there is a strong prior W-2 history in the same field. Bank-statement and 1099 alternatives exist, but they are non-QM, not FHA.
What can change the answer?
Income type, employment history, debt ratio, reserves, automated underwriting findings, and lender overlays can change the answer.
Want the real answer for your file?
FHA guidelines are the rule. Your credit, income, payment, property, and county limit are what decide the actual answer.
More FHA questions on Requirements
Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review.