Self-Employed Get Conventional Loan With Only One Year Tax Return

It can be quite challenging to get a conventional loan today if you are self-employed.  There are a myriad of tough guidelines you have to pass when the underwriter reviews your tax returns to calculate your income.

  • You could have had a great year this year and a so-so year last year
  • You could have some large unrelated losses last year
  • You could have been a sole proprietor claiming you income on schedule C last year and incorporated this year for the tax advantages

These examples are just a few where it can be advantageous to be able to just use your most recent year of tax returns to qualify for a conventional home loan in California.  And you can do this.  Basically when we run your loan though the automated underwriting system as a self-employed borrower, if the findings tell us we only need one year of federal tax returns, that is all we need to provide.  This can allow you to elude many of the issues like the bullet pointed examples above when you have to provide two years of tax returns.

So I hope this gives you hope to apply for a loan if you are self-employed.  Please don’t hesitate to call 858-922-7899 or email if you have any questions.

Below are some highlights to conventional loans in California:

  • 5% down conventional loans have much lower monthly mortgage insurance and no up front mortgage insurance than FHA home loans.
  • Conventional loans can be had with as little as 3% down payment
  • Conventional interest rates are at 60 year lows


Warm Regards,

Rob Chomentowski

Sr. Loan Officer


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