First-time · Income
Self-employed and 1099 buyers
A W-2 file is a stack of stubs. Yours is two years of how the business actually made money. That is workable. It is not a same-afternoon pre-approval.
What we need
- Two years of personal returns, all schedules
- K-1s or business returns if you have an entity
- Year-to-date profit-and-loss, signed
- Business and personal bank statements when deposits have to be sourced
What sinks these files
A new EIN last spring and a verbal “I make eight thousand a month.” Declining income year over year with no story. Mixing personal and business accounts so we cannot tell what is rent and what is a customer. We will tell you if the file needs another tax year before you tour.
Add-backs, in English
Depreciation is often added back. One-time expenses can be, when they are documented as one-time. Regular truck payments and owner draws are not magic. We do the worksheet. You do not need to guess which line on the Schedule C helps you.
Questions
- How many years of returns do I need?
- Two years is the standard. A brand-new LLC with three months of deposits is not two years. We can sometimes use a W-2 history plus a short self-employed stretch — call before you assume no.
- Do you use the adjusted gross on the 1040?
- We start there and add back depreciation, depletion, and certain non-cash expenses when the guideline allows. The number on the last line is not always the number we can use.
- Can I qualify on invoices I have not deposited?
- No. Underwriting needs deposits that match the return story. A pile of unpaid invoices is not income yet.
Keep reading
More first-time guides
-
Before you tour
Get ready to buy
What “first-time buyer” means, how debt-to-income works, and what to stop doing 60 days out.
-
Paperwork
Documents and where to find them
Paystubs, bank PDFs, tax transcripts, rent history, and how to pull each one without a scavenger hunt.
-
The money
Down payment and cash to close
Earnest money, closing costs, seller credits, gifts, and Ohio down payment assistance — one number, not five.
-
The payment we count
Student loans and a mortgage
Deferred, income-driven, parent PLUS, and why paying them off mid-file can backfire.
-
Two names
Buying with a partner or parent
Who goes on the loan, who goes on title, occupancy rules, and when a co-signer actually helps.
-
The house type
Condos, manufactured, well and septic
Warrantable condos, titled manufactured homes, private well, and septic — what kills a file before the appraisal.
-
House hack
Owner-occupied 2–4 units
Live in one unit, rent the others. How FHA and conventional treat rental income on a first purchase.
-
Build or buy
New construction vs resale
Builder contracts, rate locks that expire, specs that change, and why a resale file is a different clock.
-
The stretch
From offer to keys
Inspections, appraisals, insurance, underwriting conditions, and closing day in this market.
Start here
Bring the returns
Call (740) 314-5324 before you scan a two-inch stack. We will tell you the short list.