Are there any lenders who do first home loans with only one year of tax returns?

[Alex Ng]

Hi im looking to house hack a primary residence. However I only have 1 year of tax returns. I have my other year but I barely made any money. I'm wondering if there are any lenders that would still allow 1 year tax returns. Im looking to get in at 3% down on a fixer 2-4 unit, do rehab and increase 20% equity to remove PMI. I also own other investment properties but I have not been a landlord for 2 years yet. Can I still count it as income?

[Jason Wray]

Alex,

If you are earning W2 income it's possible to get an approval but in order to offer an exact answer the income and DTI would have to be calculated. You have to calculate based on a more than a few things like loan amount, down payment, taxes, Insurance, (Any HOA) PMI, based on credit, etc.

If you are 1099 the Bank can look at the most recent 1099/Schedule C if you have been in business for 5 years or more with a 25% ownership in company or more.  There is also a Bank statement loan but that would require 10% down where they use gross deposits instead of income/taxes.