When 2 Years Isn’t 2 Years: What Self-Employed Buyers Need to Know About Qualifying

For self-employed borrowers, the NUMBER ONE question we get is:

“Do I need two full years of tax returns?”

The answer?

Not always. 

And not in the way you might think.

How It Really Works (In 2025)

1-Year Returns + History

If you’ve been self-employed for at least 2 years but only have 1 year of filed returns, some lenders can use that one year to qualify — assuming your income is stable and the business is healthy.

Different Start Dates Matter

A borrower who became self-employed in June 2023 might technically qualify in July 2025 with just one return, depending on how the underwriter counts the start date. It’s not just calendar years — it’s time in business.

Non-QM Solutions

Bank statement loans, 1099-only programs, or even P&L-only options can get qualified without tax returns at all. These programs open doors for business owners who write off aggressively but cash-flow strong.

Asset Utilization

Have capital saved up? You can qualify off of assets alone in some cases — even with minimal reportable income.

Let’s Simplify It for Clients and Agents:

You don’t need to have:

• 2 full tax years showing profit

• W-2s or pay stubs

• “Perfect” bookkeeping

  
  

What you do need is the right structure, a clear story, and a lender who gets how entrepreneurs operate.

If you’ve got a client sitting on the sidelines, nervous about their tax returns, let’s run the numbers and see if they’re actually ready — because many are, and don’t even know it.

📲 Apply here: 5 MINUTE APPLICATION