Beginner Question about being self-employed

[Brit Sharon]

Hi Everyone,

I hope I don't sound stupid asking this but how does everyone who is self-employed qualify for a loan? I'm a web designer and after reading Rich Dad Poor Dad, I made an S-corp and funnel most of my expenses through my business like he says in the book but now my income looks like I only make ~$32k a year. In addition, I have a $680k mortgage on my primary home so my debt to income ratio doesn't help me.  For those who are self-employed, how do you qualify for a loan? Additionally, I'd also like to refi my primary home to lower the interest rate, but I was told by the loan officer who helped me with my primary home that because of my debt to income ratio, I wouldn't qualify for a refi.

Just a little bit of context: I live in Los Angeles and am looking to invest out of state in homes around $100k-$130k so that's the loan amounts I'd be seeking.

I appreciate the help and look forward to learning from the community.