my wife is selfemployed can we use her income for the mortgage?

If you have a two year history on the tax returns and we are not seeing a major decline in the income from say 2012 to 2013 or 2013 to 2014 depending on if you have filed 2014 yet you should be fine.

So long as her income is claimed on your federal tax returns, and you can support the income for the past 2 years, then yes.. lenders will take the 2 year average if she has increased year over year, and they will take the lower of the two years if her income has declined year over year..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Sounds like a good looking profile what is credit and assets looking like? What type of mortgage payment would you feel comfortable paying each month? If you want to talk to a lender I'm will to help just like the rest of quality lenders on this forum.

of course you can averaging income is how it works being self employed

Yes you can. It will only be a matter of the lender determining the number they will use, which will ususally be a two year average. Call me aytime at 610-308-9001 if you want to talk. I'm in PA, and lend in MD.Ed Fallon, Univest Bank & Trust Co., NMLS #144708

Her net income will be used as it is stated at the bottom line on IRS Form C.

As long as she has been self employed for over two years, you can use an average of her last two years income, unless the most recent is less then they will use that, also remember you have to deduct any unreimbursed expenses from her bottom line each year as well.

There is no reason any self-employed borrower would be excluded on that basis alone as long as she's creditworthy. It is true, however, that her expenses will be averaged over two years just like her income from the self-employment. So this means an underwriter can include only the difference between income and expenses based on the tax returns. There are many other details but the best thing you can do is send the income in for an analysis. I'd be happy to look at it just like my other colleagues here on the forum. Hope this helps.Thanks for your question.RJS