It's been a while since I worked as and underwriter due to me having a family emergency that has kept me away from work. However from what I recall self employed borrowerust have 2 years history being self employed and it must be validated with business license or CPA letter and tax returns. Normally 2 years taxes are necessary to verify the trend and stability of income, if it's increasing or declining. Declining income should be explained and acceptable, but we also had to have Sharp increases from one year to the next explained too. Business bank statements we're required to determine if operating at a loss each month or if there is adequate cash flow to cover expenses Profit and loss is needed to validate present YTD income to support the business trend, and we have to justify likeliness to continue etc. So there is a lot more to consider for self employed borrowers and cash flow analysis is to be done