Length of Self-Employment Fannie Mae generally requires lenders to obtain a two-year history of the borrower's prior earnings as a means of demonstrating the likelihood that the income will continue to be received.

There is no W-2 self-employed specific form that you can create. Instead, you must report your self-employment income on Schedule C (Form 1040) to report income or (loss) from any business you operated or profession you practiced as a sole proprietor in which you engaged for profit.

In most instances, the Borrower should have at least a two-year history of primary employment documented on Form 65, Uniform Residential Loan Application and verified in ance with Topic 5300.

The Two-Year Employment Standard This is a commonly used standard within the mortgage industry, when it comes to documentation. Most lenders like to see steady employment and/or income for at least the past two years.

This worksheet may be used to prepare a written evaluation of the analysis of income related to self-employment. The purpose of this written analysis is to determine the amount of stable and continuous income that will be available to the borrower for loan qualifying purposes.

A minimum history of two years of employment income is recommended. However, income that has been received for a shorter period of time may be considered as acceptable income, as long as the borrower's employment profile demonstrates that there are positive factors to reasonably offset the shorter income history.

Fannie Mae generally requires lenders to obtain a two-year history of the borrower's prior earnings as a means of demonstrating the likelihood that the income will continue to be received.