How Do You Get a Mortgage in Myrtle Beach When You’re Self-Employed or Seasonal?

If you own a business around Myrtle Beach, work on 1099, or make most of your money between March and October, you’ve probably been told a mortgage is going to be hard. That’s not quite right. The loan isn’t harder to get. It’s harder to calculate.

Here’s the part that matters. A lender doesn’t use what your business brought in. It uses what’s left after your tax return is done. Once you understand that one sentence, everything else about qualifying with self-employed or seasonal income starts making sense.

What counts as self-employed to a mortgage lender?

If you own 25% or more of a business, you’re self-employed as far as the loan is concerned. That’s the line Fannie Mae draws in its Selling Guide section on self-employment income (B3-3.5), and most lenders apply it the same way.

That catches more people than they expect. The contractor who set up an LLC. A stylist renting a chair on a 1099. The charter captain, the cleaning company owner, the commission-only salesperson. If you hold a 25% stake, you’re in that bucket — even if you also have a W-2 job somewhere else.

It matters because self-employed borrowers get a different documentation path: more paperwork, more analysis, and an income number the lender calculates rather than reads off a pay stub.

Why does the lender use a smaller number than my business made?

Because your write-offs work against you here. Every deduction that lowered your tax bill also lowered the income a lender is allowed to count.

This is the biggest surprise in the process. You know your business had a good year. Your accountant did exactly what you paid them to do and got your taxable income down. Then the lender pulls your returns and comes back with a number that looks nothing like what you had in mind.

The lender isn’t ignoring your money. It’s running a cash flow analysis — usually on Fannie Mae Form 1084 — that starts with the net income on your return and adjusts. Some items get added back, because they lowered your taxable income without taking cash out of your pocket: depreciation, depletion, business use of your home, certain one-time losses. Others don’t. Meals, travel, vehicle expenses, equipment you actually bought — that money left the business, so it stays subtracted.

Write-offs cut both ways. Aggressive deductions save you money in April and cost you buying power whenever you apply. Neither choice is wrong. You just want to be making it on purpose.

How many years of self-employment do you need?

Two years is the standard, and there are two real exceptions.

The usual requirement is two years of signed federal tax returns with all schedules — personal returns, and business returns if your structure files them. Your lender uses that history to show the income is stable and likely to continue.

The first exception is for a shorter track record. If your most recent returns cover a full 12 months of self-employment in your current business, you may still qualify — but you have to show you were earning at the same level or better in the same field before you went out on your own. The person who spent eight years as a foreman and then started their own crew is a much easier story than the person who changed industries last spring.

The second exception cuts the other way. If your business has been running five straight years and you’ve held 25% or more of it that whole time, the lender may be able to work from one year of returns instead of two, as long as it completes the written cash flow analysis. Long, boring, consistent history earns you flexibility.

Can you get a self-employed mortgage in Myrtle Beach with seasonal income?

Yes. The lender averages it — that’s the whole answer, and it’s why a huge summer doesn’t fix a thin winter.

This market runs on a season. Restaurants in Murrells Inlet, rental cleaning crews in Garden City, charter operations out of Little River, contractors who frame all summer and slow down in January — a lot of Horry and Georgetown County income arrives in a five- or six-month window and then goes quiet.

Underwriting looks at the full cycle, not a snapshot. Your income is averaged across the documented period, so the slow months are already baked in. That’s usually good news: you don’t have to apply in August to look your best, and a February application isn’t the disadvantage people assume.

Here’s what surprises people. The risk isn’t the seasonality — it’s the trend. Two years that look roughly alike read as stable income. A year that dropped hard from the one before gets a closer look, and the lender may use the lower figure or ask why. If you had one bad season, be ready to explain it in writing.

If you want a fuller picture of how the file gets evaluated once it’s in, I wrote about what underwriting really looks for in a mortgage loan.

When is a bank statement loan the honest answer?

When your tax returns don’t reflect what you actually earn — and only then.

A bank statement loan qualifies you on money deposited into your accounts instead of the net income on your return. The lender reviews 12 to 24 months of personal or business statements and builds an income figure from the deposits. Our bank statement program page walks through what’s required.

These loans exist for a real reason. If you write off heavily and your returns show little profit, a conventional loan may not reach where you need it to even though the cash is clearly there.

Now the honest part. A bank statement loan generally costs more than a conventional loan, asks for a larger down payment, and carries its own credit and reserve standards. It isn’t a shortcut and it isn’t better. It’s a different tool for a specific problem.

If your returns do support the loan you need, take the conventional loan. I’d rather run both calculations and tell you the cheaper one wins. Sometimes the returns support more than the borrower expected and the conversation ends right there.

What’s the one thing to do before you apply?

Talk to your CPA before you file your next return — not after.

That return is the one that’s going to qualify you. Once it’s filed, it’s filed, and we work with whatever it says. But if you know you want to buy in the next year or two, your accountant can weigh the tax savings from a deduction against what it does to your qualifying income and help you decide what’s worth it.

Most people find out about this tradeoff after they’ve already filed. That’s the version of this conversation nobody enjoys having.

The second-best move, if the return is already filed: get your income calculated before you shop. Not estimated — calculated, off your actual returns. It takes one conversation and it tells you the real number instead of the one you’re guessing at.

Let’s run your actual numbers

Send me your last two years of returns and I’ll tell you what your qualifying income comes out to, and whether a conventional loan or a bank statement program is the better fit for your situation. No guessing, and no pressure to use the more expensive option if you don’t need it. Contact me to get your self-employed income reviewed.

Frequently asked questions

Do I need two years of tax returns to get a mortgage if I’m self-employed?

Usually, yes. Two years of signed federal returns with all schedules is the standard. There are exceptions — one year may be enough if your business has operated for five consecutive years with your 25% or greater ownership throughout, or if your most recent return covers a full 12 months and you can document earning at a similar level in the same field beforehand.

Will my tax write-offs hurt my chances of getting approved?

They can. A lender calculates your income from the net figure on your tax return, not your gross revenue. Deductions that lowered your taxable income also lower your qualifying income. Some items get added back in the lender’s cash flow analysis, like depreciation and business use of your home, but expenses that actually took cash out of the business stay subtracted.

Does seasonal income count if I only earn money part of the year?

Yes. Seasonal income is averaged over the documented period, so slower months are accounted for. What matters more than the seasonality is the trend between years. Two comparable years read as stable. A sharp drop from one year to the next will get a closer look and may need a written explanation.

Should I use a bank statement loan instead of a conventional loan?

Only if your tax returns don’t support the loan you need. A bank statement loan qualifies you on deposits rather than net income, which helps borrowers who write off heavily. It typically carries a higher cost and a larger down payment requirement than a conventional loan, so it’s worth calculating both before you choose.

I have a W-2 job and a side business. Am I self-employed?

For the side business, yes, if you own 25% or more of it. Your W-2 income is documented the normal way. The business gets the self-employed treatment, and if it shows a loss, that loss can reduce the income the lender counts — even if you never intended to use the business income to qualify.

About Travis Buis

Travis Buis is a loan officer with Elite Home Lending serving Myrtle Beach and the Grand Strand, working with buyers and homeowners across Horry and Georgetown counties. A good share of his week goes to income that doesn’t fit a pay stub — business owners, 1099 contractors, commission earners, and the seasonal income this market runs on. He handles conventional, bank statement, and portfolio options, and starts by calculating what your returns actually support before recommending anything. Meet the team or get in touch.

Travis Buis, NMLS #1711446. Elite Home Lending, LLC — NMLS #2788023. Equal Housing Opportunity.

This article is for educational purposes only and is not a commitment to lend or an offer of credit. Program terms, rates, and eligibility standards are set by lenders, investors, and agencies and are subject to change without notice. Loan approval is subject to underwriting, credit approval, and property eligibility. Calculator results are estimates only. Nothing here is tax or legal advice — consult your CPA or attorney for your situation.