< Back to JVM's Blog

Myth: Self-employed Borrowers Need 2 Years of Income; 1 Year Often OK

We often have borrowers with ample income but who only recently became self-employed. For example, we have a young Realtor who is doing extremely well this year but had no self-employment income last year (in 2013). We also have many borrowers who go to work for companies in which they own over 25%, effectively making them self-employed.

It is a myth, however, that these borrowers need two years of self-employment history to qualify for the best financing available. If borrowers are strong, Freddie Mac often only requires one year of tax returns to qualify for financing.

Our young Realtor above has perfect credit and a large down payment, so he will very likely qualify easily for any desired financing once he files his 2014 taxes.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646