Self-Employed Income Qualifying Guide
This is a super handy guide for the self-employed to see what they can use for their their income to qualify for a mortgage.
This is not the final option though so ensure you call to discuss your specific situation as everyone is different.
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4 Years Track Record
If the client shows 4 consecutive years of positive earnings, then we can use the most recent year’s earnings to qualify the file. |
2 Years’ Average NOAs
Fully qualify the client’s last two years’ NOAs. We can take the average of their last 2 years’ Line 150 income as long as the recent year shows the higher income.
If the recent year shows the lower income, then we will rely on the recent year’s NOA to qualify the file. |
15% Gross-Up
We can take the average of the client’s last two years’ NOAs to qualify and in addition, we can then gross-up the average by 15%.
If recent year shows the lower income, then we may gross-up the recent year’s income by 15%. |
Add Backs
IF the 15% gross-up does not qualify the file, then we can include the below add backs.
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