Credit and Qualification
How Self-Employed Borrowers Qualify
Published 2026-07-31 · Last reviewed 2026-07-31 · Reviewed by Jim Lyddon, NMLS #2573609
Self-employed income is generally documented through business and personal tax returns, with certain deductions added back and others subtracted. Qualifying income frequently differs from gross revenue and from what a business owner considers take-home pay, which is why an early review matters.
What to know
- Qualifying income is calculated from returns, not from deposits alone.
- Some deductions reduce qualifying income; others are added back.
- Business structure affects how income is documented.
- Consistency across years matters as much as the amount.
- Have Jim review your returns before you write an offer.
How Jim approaches this
Bring your specific numbers. General education gets you oriented, but the decision only becomes clear when it is run against your income, your cash position, the property you are considering and how long you plan to keep the loan. That conversation is free and does not require an application.
The information on this website is provided for general education only and does not constitute financial, tax or legal advice. Loan programs, guidelines and availability are subject to change and to borrower and property qualification.
JHL Mortgage, Inc. is an Equal Housing Opportunity lender. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.