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First Time Home Buyer - SE Income

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First Time Home Buyer - SE Income

Hi There,


I would appreciate your feedback, to see if I've pulled the trigger too soon.



696 - TransUnion Fico 4

670 - Experian Fico 2

659 - Equifax Fico 5


Debt (monthly)

$382 car

$149 student



w2 employee

2018 $55k

2019 $56.7k


Self-employed - Same line of work, CPA incorporated to save self-employment tax.

2018 $10k net profit (schedule C / sole prop)

2019 S-Corp $20k w2 + $69.7k profit share/K1/schedule E



Purchase Price: $482k

Loan Amount: $462,720

LTV 96%

3.75 / 4.796


Received another quote for 3.125, I'll rate shop in a bit but that isn't my main concern.  My concern is income. I want to use 2018 & 2019 returns. CPA is waiting on a few more documents from brokerages and then will be filing for 2019 business & personal ASAP. He is able to provide cpa letter for 2019 P&L. The bank that preapproved is asking for 2017 & 2018 returns.  Will there be any issue (outside of time) using this same approval that is good for 90 days and submitting 2018 & 2019 returns?


Also, how is that increase in self-employment income treated? Is it averaged or? 


Finally, are there any issues with self-employment returns being on Schedule C one year and Schedule E the second year for the same business just different means of filing tax for the two year requirement?


I appreciate your time & feedback.

Message 1 of 3
New Contributor

Re: First Time Home Buyer - SE Income

I would make sure they will accept your CPA letter. We're doing the same for 2019 taxes already filed but the LO wanted the 4506T form for transcripts from the IRS for 2019. We will have to wait for those maybe as late as May unless we can get them expedited by the Tax Advocate which we can't do until the IRS has accepted the return.

Message 2 of 3
Valued Contributor

Re: First Time Home Buyer - SE Income

Wondering how the bank Pre Approved you without seeing your Tax Retyrns? No they won’t accept the CPA Letter, will require actual returns to use SE income. Did you have SE income in 2017?
Message 3 of 3
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