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Am I required to consider self-employment income or a loss if another source of income is used?

Analysis of Borrower’s Personal Income

Analysis of a self-employed borrower’s personal income, including the business income or loss reported on the borrower's individual income tax returns, is not required when a borrower is qualified using only income that is not derived from self-employment and self-employment is a secondary and separate source of income (or loss). Examples of income not derived from self-employment include salary and retirement income.

For additional information, see B3-3.2-01, Underwriting Factors and Documentation for a Self-Employed Borrower.

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