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Can I add my self employment income to our mortgage application?

My wife and I are both W2 earners. I have a side gig that used to be full time in 2021 but sales have gone down 50% so I had to go back to employment. I have 2 years worth of tax returns on my business and I want to know if I can add this to my income when I apply for a loan. Will this even matter or does W2 docs take priority? by parksrob959 from Phoenix, Arizona. 9 days ago Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,788 contributions

Sure, you can add the self-employed income. The lender is going to want to see the 2022 returns (if done), and also the 2021's if you've been in business less than 5-years. If 2022 not done, you will need 2021 AND a P&L Statement to show how 2022 went. They will be very concerned about, and looking for declining income. For example, if you are down 50% from last year, will you be down another 50% next year? I'd just leave the self-employed income out of the picture unless you absolutely need the self employed income to qualify. I lend in WI, MN, IA, ND, SD, Find me at FirstTimeHomeBuyer-MN.com | Cambria Mortgage | NMLS 274132

7 days ago
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Dave Skow (daveskow)
#16 ranked lender in Washington - 392 contributions

you can ass the self employment to your application ...most underwriters will use 2 yr average of the income that appears on the tax returns ...so if your 2022 income was decent - get your 2022 returns completed and filed asap ...otherwise the 2021 and 2020 returns will be averaged for the seld employed componenet ....your present salaray / wage on your w2 job will also be usable- thanks - good luck - Dave SKow... I am licensed in WA. Find me at dave.skow@movement.com or 206 714 9745 | Movement Mortgage | NMLS 278613....let me know if you would like a referral to a loan officer in your location

5 hours ago
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