Mortgages for self-employed borrowers in Minnesota, Wisconsin, and Florida.
Self-employed files aren't harder to place. They're harder to place correctly — because the income an underwriter uses is rarely the income you think you made.
The short answer
Self-employed borrowers can qualify with tax returns on conventional, FHA, VA, or USDA loans, or with alternative documentation — bank statements, a CPA-prepared profit-and-loss statement, 1099s, or assets — through non-QM programs. The right path depends on how your income appears on your returns. Brent Busch (NMLS #1626669) handles these files in Minnesota, Wisconsin, and Florida.
Why the underwriter's number differs from yours
Agency underwriting starts from taxable income, after write-offs, not gross revenue. It then adds back certain non-cash or non-recurring items — depreciation, depletion, amortization, business use of home, and some one-time losses — using a cash flow analysis such as Fannie Mae's Form 1084. The same business can produce very different qualifying income depending on how the returns were prepared and how the analysis is done.
Underwriters also look at the trend. Stable or rising income is usually averaged; declining income may be averaged down or require an explanation, and a sharp decline can stop a file.
Full-documentation (agency) paths
- Two years of returns is the standard: personal 1040s with Schedules C, E, or K-1s, and business returns (1120S or 1065) where you own 25% or more.
- One year of returns can be acceptable on some conventional loans when automated underwriting findings allow it and you've been self-employed in the same business for at least five years.
- Less than two years self-employed can work if you have at least twelve months in the business and a documented history in the same line of work before it.
- Year-to-date profit and loss statements may be requested, particularly early in a new tax year.
Conventional, FHA, VA, and USDA all have self-employment rules. Lender overlays vary, which is why reading the Desktop Underwriter or Loan Product Advisor findings and matching the file to the right wholesale lender matters.
Alternative-documentation (non-QM) paths
When tax returns don't reflect what the business actually supports, non-QM programs qualify on other evidence:
- Bank statement loans use twelve or twenty-four months of personal or business deposits, with an expense factor applied.
- Profit-and-loss programs rely on a P&L prepared or reviewed by a CPA or tax preparer.
- 1099 programs qualify contractors from 1099 income.
- Asset-based programs qualify from liquid assets rather than income.
- DSCR loans qualify an investment property on its rental income relative to its payment rather than on personal income.
Non-QM loans are not agency loans. They are typically priced higher and have different down payment and reserve requirements than conventional or government loans; the full terms are disclosed on your Loan Estimate. We compare the agency path first so you can see the trade-off.
Plan with your tax preparer
The best time to talk to an originator is before you file. Extensions, amended returns, how you take distributions, and how aggressively you write off expenses all change qualifying income. A short conversation between your originator and your CPA can save a year of waiting.
Who handles these loans at BLG
Ranked #1 in Minnesota by closed loan units through United Wholesale Mortgage in 2023, 2024, and 2025. Conventional, FHA, VA, USDA, jumbo, construction, self-employed, and non-QM files.
Profile & licensing · (507) 351-0581Common questions
Can I get a mortgage with one year of self-employment?
Sometimes. Agency loans generally want two years, but twelve months can work with a documented prior history in the same field. Some conventional loans accept one year of tax returns when automated findings allow and the business is at least five years old. Non-QM programs have their own rules.
Can I use business funds for my down payment?
Often, yes. The underwriter will want to confirm that using the funds won't harm the business, typically through a cash flow analysis or a letter from your CPA, along with your ownership documentation.
Are 1099 contractors treated as self-employed?
Generally, yes, for agency loans: 1099 income is documented with tax returns like other self-employment income. Some non-QM programs qualify contractors directly from 1099s.
Will my tax write-offs reduce what I qualify for?
Usually. Agency underwriting uses taxable income with certain add-backs, so large deductions lower qualifying income. Bank statement and P&L programs are the alternatives when returns understate what the business supports.
What is a DSCR loan?
A debt-service coverage ratio loan is a non-QM investment property loan that qualifies based on the property's rental income compared with its payment, rather than on the borrower's personal income. It is not available for a primary residence.
Which states does Brent Busch originate self-employed loans in?
Brent Busch (NMLS #1626669) is licensed in Minnesota, Wisconsin, and Florida. For property in other states except New York, he introduces borrowers to a licensed Edge Home Finance, LLC originator.
Related guides
Official sources
- Fannie Mae Selling Guide
- CFPB — Regulation Z ability-to-repay and qualified mortgage rule (12 CFR 1026.43)
- NMLS Consumer Access — Brent Busch (NMLS #1626669)
Last reviewed: September 2026. Program rules change; confirm current requirements with your originator before relying on any detail on this page. Nothing here is a commitment to lend.