Are 2 years personal and business income tax returns required for self-employed borrowers?
Simple answer: Not always.
FHA and VA guidelines both require the use of 2 years personal and business income tax returns. However, those returns may provide for more income consideration than many are aware.
Most conforming/conventional loans only require 1 years personal and business income tax returns to be considered for determining qualifying income. Some of the determining factors will be the years in business, down payment, credit score and purchase price. You will need to inquire with your FSMG loan officer to best determine your qualifying income and its’ calculation requirements.