Getting a Mortgage as a Self-Employed Borrower in Nevada

Possibly, but it's more difficult. If you have 2+ years in the same field as a W-2 employee and recently went self-employed in the same industry, some lenders will consider 1 year of self-employment. You'll need strong income, excellent credit, and thorough documentation showing stability.

Not always, but it helps. Year-to-date P&L statements can be prepared by you, a bookkeeper, or CPA. However, CPA-prepared statements carry more weight with underwriters. At minimum, your P&L should match your business bank statements and look professional.

Declining income makes qualification harder. Lenders may use the lower year's income instead of averaging, or they may require a letter of explanation for the decline. If you have a valid reason (business change, temporary setback) and YTD income is strong, you may still qualify. Consider waiting until you have 2 years of stable/increasing income.

Yes! 1099 contractors are treated similarly to self-employed borrowers. You'll need 2 years of tax returns showing 1099 income, and lenders will calculate your qualifying income after typical business expense deductions (even if you don't have a formal business entity). The key is consistency in the same line of work.

Before applying: Work with a CPA to identify all allowable add-backs (depreciation, amortization, etc.). Minimize unnecessary business expenses in the months leading up to your mortgage application. Ensure your YTD P&L shows strong income. Provide detailed explanations for any unusual expenses or income fluctuations. Having 6-12 months of cash reserves also strengthens your application.