Texas Mortgage Plan · A d/b/a of Legacy Mortgage, NMLS #1759275
Self-Employed Income Qualifier
What you earn and what a lender counts are rarely the same number. See how your qualifying income is actually calculated — and what it means for what you can afford.
Equal Housing Lender
Draw Up Your Income
Choose the method that matches how you'd qualify.
Qualification Method
Standard for Conventional, FHA & VA — uses your last 2 years of net income from tax returns.
Most Recent Year
$65,000
$8,000
$2,000
Prior Year
$58,000
$7,000
$2,000
Deposit History
$9,000
Total business or personal deposits, averaged over your statement period
Portion of deposits treated as business expense — 50% is the default without a CPA letter specifying a lower figure
Debts & Loan Details
$400
10% = $0
6.99%
Housing Costs
1.8% of home value / yr
$2,400
$0
Comfort Level
43%
Your Estimated Qualifying Monthly Income
$0
This is the number a lender uses — not your total revenue or take-home pay.
What You Take In (Monthly)
$0
Qualifying Income
$0
The Gap
$0
How This Was Calculated
Year 1 Qualifying Income
$0
Year 2 Qualifying Income
$0
Income Trend
Year-over-year change, most recent vs prior
0%
Average Monthly Deposits
$0
Expense Factor Applied
Deducted before counting as income
0%
Annual Qualifying Income$0
What This Could Mean For Affordability
Estimated Max Home Price
$0
Down Payment Needed
$0
Estimated Loan Amount
$0
Est. Total Monthly Payment (PITI)
$0
Your Borrowing Room
Where your total monthly debt — including the new housing payment — lands on the debt-to-income scale lenders use to qualify you.
43%
0%
0%50%
Comfortable (≤36%)
Typical qualifying range
Stretched (>43%)
Adjust the sliders to see how your numbers change.
How Self-Employed Income Actually Gets Qualified
- Tax Return Lenders typically average your last 2 years of net income from Schedule C, K-1, or corporate returns — then add back non-cash expenses like depreciation, since those don't reduce your real spending power.
- Declining Income If year-over-year income drops more than about 20%, most lenders will use the lower year — or ask for a written explanation before using the average.
- Bank Statement Non-QM programs skip tax returns entirely and qualify you on deposit history instead — a real option if your tax write-offs make your returns look leaner than your actual cash flow.
- Expense Factor Bank statement programs apply a flat expense deduction (often 50% by default) unless a CPA provides a letter supporting a lower, more accurate figure for your business.
- Documentation Tax return method: 2 years of returns plus a YTD profit & loss statement. Bank statement method: 12–24 months of statements, sometimes a CPA letter.
Buying with a W-2 co-borrower or want the general affordability picture? Try our Home Affordability Calculator for a straightforward income-based estimate.
Every Business's Numbers Are Different
This estimate simplifies real underwriting guidelines. Your actual qualifying income depends on your specific returns, entity structure, and the program you choose. Tell us a bit about your plans and Elizabeth or Shea will personally follow up.
Get Pre-QualifiedElizabeth Rose (CDLP · NMLS# 252686) and Shea Patton (Realtor · NMLS# 251397) both review new inquiries personally.
Texas Mortgage Plan is a d/b/a of Legacy Mortgage, NMLS #1759275 · Equal Housing Lender
This calculator provides estimates for educational purposes only. It is not a loan approval, pre-qualification, or commitment to lend. Actual qualifying income depends on your tax returns, entity structure, lender guidelines, and the specific loan program. Contact Texas Mortgage Plan for a personalized assessment.
This calculator provides estimates for educational purposes only. It is not a loan approval, pre-qualification, or commitment to lend. Actual qualifying income depends on your tax returns, entity structure, lender guidelines, and the specific loan program. Contact Texas Mortgage Plan for a personalized assessment.