If you receive 1099 income vs. W2 Income, a home financing lender may consider your income as self-employed. In other circumstances, they may just average your 1099 income. How your income is calculated is based on the job circumstances, your tax returns, and loan program requirements. Everyone’s situation can be slightly different, so let’s talk before you decide to start exploring your home options.
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If you receive 1099 income vs. W2 Income, a home financing lender may consider your income as self-employed. In other circumstances, they may just average your 1099 income. How your income is calculated is based on the job circumstances, your tax returns, and loan program requirements. Everyone’s situation can be slightly different, so let’s talk before you decide to start exploring your home options.

ByBrandon Butler

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When calculating Self-Employed income to buy a new home, lenders will look at gross income, minus expenses and then add back in paper write-offs such as depreciation, depletion, amortization, casualty losses, net operating losses, or other one-time expenses. Then, we average that income over the time period dictated by the loan program. If you are self-employed, I’m here to answer your questions!
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When calculating Self-Employed income to buy a new home, lenders will look at gross income, minus expenses and then add back in paper write-offs such as depreciation, depletion, amortization, casualty losses, net operating losses, or other one-time expenses. Then, we average that income over the time period dictated by the loan program. If you are self-employed, I’m here to answer your questions!

ByBrandon Butler

A subscription is required to access this content—please view our available subscription options. If you are a current subscriber, please log in.