Self-Employed Income Estimator
Self-employed borrowers are usually qualified on net income after business expenses, often averaged over two years — or, under bank-statement programs, on deposits. Enter the monthly qualifying income you expect a lender to use, your other monthly debts and an estimated rate to see the loan amount that income may support.
Frequently asked questions
- How do lenders calculate self-employed income?
- Traditional programs average the net income on your last one or two years of tax returns, adding back non-cash items like depreciation. Bank-statement programs instead average 12 or 24 months of business or personal deposits and apply an expense factor. Each lender has its own method.
- What is a bank-statement loan?
- A non-QM program that documents income with bank statements rather than tax returns. It suits business owners whose tax returns understate cash flow. Rates and down-payment requirements are generally higher than on conventional loans.
- What should I enter as monthly qualifying income?
- Your best estimate of the figure a lender would use — for example the two-year average of net profit plus depreciation, divided by 12. Results are estimates for planning only, not financial advice, a credit decision, or an offer of credit. A loan officer can confirm the numbers that apply to you.
Want a loan officer to look at your numbers? The Loan Officer matches borrowers with loan officers for non-QM, DSCR, bank-statement and hard-money scenarios.
The Loan Officer is a loan-matching marketplace, not a lender or mortgage broker. It does not set rates, make credit decisions, or originate loans. Equal Housing Opportunity.