Any banks/CUs that are best for self-employed / lower income?

[Swatch]

I think I'll be applying for a mortgage in 8-12 months with solid credit scores and reports. A portion of my income is disability and the rest is self-employment which has varied. It may be a stretch to get my income to cover the payment that I want to take on, so I was hoping for a 40 year term.

I am wondering if there are any companies that are best for my situation because it seems like I could start a relationship with them now. I have been building relationships with Ally, Discover, and PenFed (and AMEX doesn't offer mortgages), but I feel that maybe I should be building one with a different bank? Or should I focus on PenFed?

I'm not a first time buyer.

[JVille]

Lenders will use your last 2 or 3 Federal Tax returns for Self Employed income. They will only use what you report (the Net amount not Gross) and will be looking for increasing incoming and not declining. They will typically average the last 24 months. You will want to get you 2021 numbers together and be prepared to file as quickly as possible.

[Red1Blue]

Besides Banks and CUs there are also lot of private lenders and specialized lenders that finance Real Estate for self employed. Did you check around?

[Swatch]

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@Red1Blue wrote:

Besides Banks and CUs there are also lot of private lenders and specialized lenders that finance Real Estate for self employed. Did you check around?

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Yes, the ones that make it easier for self-employed seem like they would have worse rates because of the risk. Also they seem to be specialized and not have things like checking accounts where I could build a history. I am still wondering if I should be building history with PenFed or a certain other bank, but I am not sure it will matter much. (I can't get in NFCU.)